The initial public offering for Mongolia's first 20% interest asset-backed securities (ABS), offered to the public for the first time on the Mongolian stock market, officially closed on July 1, 2025, after being fully subscribed in just four days.
"Netcapital ABS" SPC LLC successfully raised a total of ₮30.0 billion by offering the public ABS that are 100% backed by loans with a fiduciary right on vehicles. The securities have a maturity of 24 months, an annual interest rate of 20%, and quarterly interest payments.
The high level of trust and active participation from both individual and institutional investors in this high-yield, low-risk financial instrument was the key factor behind the 100% fulfillment of the initial ABS offering. This success sets a new standard and opens up new opportunities in the domestic capital market.
"Netcapital ABS" SPC LLC was founded by "Netcapital Finance Corporation" NBFI LLC, one of the leading non-bank financial institutions in Mongolia, which has been operating stably for 17 years.
As of 2024, "Netcapital Finance Corporation" NBFI LLC, the main company of the Netcapital Financial Group, had expanded to ₮271 billion in total assets, 44 branches covering Ulaanbaatar and all 21 provinces of Mongolia, over 600 skilled employees, and more than 112,000 satisfied clients.
The company was also rated 97.2% in the Financial Regulatory Commission's Corporate Governance Code assessment, making it a well-governed financial institution. This rating serves as a guarantee of its accountability, transparency, and reliability, maintaining a high level of trust among clients and investors.
The following organizations collaborated on this successful initial public offering:
- Underwriter: TDB Securities LLC
- Legal Counsel: MDS and Khanlex LLP
- Asset Trustee: MIK Mortgage Corporation LLC
- Credit Analyst: Onch Audit LLC
- Syndicate Member: Mandal Capital Markets LLC
- Stock Exchange: Ulaanbaatar Securities Exchange
We would like to express our gratitude to all the organizations, partners, and our team who made a valuable contribution to the successful implementation of this offering.
