Executive Leadership Programme Plans Mongolia’s First Impact Investment Fund
HONG KONG & ULAANBAATAR – JULY 23 2012 – The Global Institute For Tomorrow (GIFT) will be conducting its 28th Global Young Leaders Programme (YLP) in partnership with two leading financial institutions in Mongolia. Thirty senior executives from companies such as Orix, NEC, DuPont, Bosch, DBS Bank, and BASF will travel to Ulaanbaatar to work alongside management from TenGer Financial Group and Frontier Securities. The participants will develop a plan to be used in establishing an impact investment fund, which will be the first of its kind in providing capital access to small and medium enterprises and home-grown businesses in the country.
“The GIFT YLP represents a unique opportunity for global business leaders to create meaningful solutions to today’s developmental challenges. For Mongolia, it is good timing as the country is experiencing rapid growth but at the same time, facing many difficult challenges which require strong leadership and new ways of thinking. We are looking forward to working with the group on this important project,” says Bold Magvan, CEO and Head of the Executive Committee, TenGer Financial Group.
Programme participants will spend one week in and around Ulaanbaatar meeting with small business owners, consumers, and potential investors to gain an understanding and appreciation for the near and mid-term prospects in Mongolia. They will also visit Oyu Tolgoi, one of the world’s largest copper and gold mines, in order to gain perspective on the scale of change in the country. Using the data and information gathered through their site visits, meetings and interviews, the participants will apply their own business acumen to produce a project output, which will consist of recommendations for fundraising, investment pipeline, assessment criteria, and impact measurement.
Although Mongolia is increasingly known for its mineral assets and phenomenal growth in recent years, the landscape for investment opportunities is shifting. With the mining industry leading GDP growth, there is a wide range of domestic supply chain providers set to emerge as the economy grows and matures. However, high interest rates, short loan tenures, and limited access to capital markets have made the current funding environment extremely unfavourable to SMEs. Bridging the funding gap and linking SMEs to alternative financing partners is a critical step in the country’s development and offers exciting opportunities for impact investors.
The group of participants represents great diversity in culture and backgrounds. They come from eleven countries, including Mongolia, Japan, Singapore, Malaysia, Indonesia, China, Australia, India, Canada, UK, and USA. Of the thirty participants, six are from Mongolia, holding senior level positions in organisations such as Oyu Tolgoi LLC, the Ministry of Finance, XacBank, Monet Capital and Inter Group.
“This is a groundbreaking project that will pioneer the development of impact investing in Mongolia through cross-border collaboration. At a time when the country is experiencing a tremendous boom and economic growth, the project hopes to deliver a model that ensures sufficient funding for local businesses to achieve their full potential without sacrificing business, social or environmental integrity. The participants will get exclusive insight and access to the people and dynamics shaping the Mongolian business landscape on a national and global scale,” explain Eric Stryson, Director, GIFT.
About the Global Institute For Tomorrow (GIFT)
GIFT is an independent, pan-Asian think and do tank, dedicated to advancing the understanding of the impacts of globalisation through analysis, debate, dialogue and learning. GIFT tackles the critical leadership needs of current and future decision-makers through unique action learning programmes that offer practical and commercially viable solutions to meet development requirements. It also links business, public policy and civil society issues in creative ways to address the inherent contradictions of globalisation-related challenges in Asia. It ultimately channels management expertise and capital to implement projects designed to deliver tangible socio-economic and environmental benefits and create prosperous communities.
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About TenGer Financial Group
The TenGer Financial Group, founded in 2001 and headquartered in Ulaanbaatar, Mongolia, is a holding company with a diversified portfolio, including XacBank, XacLeasing, TenGer Insurance, XacSecurity, TenGer Solutions, TianRong and TenGer Capital, all providing access to broad financial services. The flagship subsidiary of TenGer Financial Group – XacBank – is the 4th largest commercial bank inMongolia that has maintained its leading positions as a transparent and socially responsible banking institution. http://www.tengerfinancialgroup.com.
About Frontier Securities
Frontier Securities is the first local Mongolian securities firm with a global network and international expertise. Established by Masa Igata in April 2007, Frontier was granted full-service securities related licenses by the Financial Regulatory Commission (FRC) of Mongolia on August 2009. Primarily focusing on cross-border investment banking businesses, Frontier is a member of the Mongolian Stock Exchange. For more on Frontier, visit http://www.frontier.mn.