As the Mongolian Mortgage Corporation (MIK) celebrates its 20th anniversary, I extend my warmest wishes to our valued shareholders, government institutions, partner banks, investors, past and present MIK leadership and staff, and the people of Mongolia.
Together, we mark 20 years of trust in establishing and developing a new housing finance system in Mongolia.
In 2006, Mongolia’s housing finance market was very different from what it is today. Long-term funding was scarce, access to mortgage loans was limited, and the link between the capital market and housing finance was underdeveloped. In 2004, the newly established government committed to building 40,000 housing units. Under a project supported by the Asian Development Bank (ADB), Mongolia introduced its first mortgage lending program, with US$15 million in funding provided through seven commercial banks. In this context, MIK was established. On 6 October 2006, the Bank of Mongolia and ten private commercial banks jointly founded the company, which the General Authority for State Registration registered with an initial share capital of MNT 11 million. Today, MIK is a publicly listed company on the Mongolian Stock Exchange (MSE), with total assets of MNT 6.2 trillion.
MIK’s founding objective was simple: to develop Mongolia’s housing finance system by providing access to stable, long-term funding. Looking back today, we recognize that this objective was significant not only for the institution itself, but also for its broader socioeconomic impact on the lives and livelihoods of people across Mongolia.
Over the past 20 years, we have developed professional expertise, helped establish a new legal and regulatory framework, and advanced the secondary mortgage market by creating a mortgage securitization system. We have also established the foundations for linking long-term funding with housing finance. Through our Special Purpose Companies (SPCs) No.1-40, we have purchased MNT 9.3 trillion in mortgage loans. As a result, more than 145,000 households now enjoy the comfort of living in their own homes, including over 45,000 households that have moved from ger areas into apartments. This period has also seen a major expansion in construction, with 10 million square meters of new residential housing built across Mongolia.
Since 2017, Mongolia’s housing finance system has relied on repayments from residential mortgage-backed securities (MBS) for funding. This marked a transition in the system, advancing from the primary mortgage market to the secondary market. Behind this progress were MIK’s financial mechanisms, systems, technology, and, above all, the hard work of its people. This achievement reflects the collective efforts of MIK’s past and present leadership and staff, partner banks, the Bank of Mongolia, government institutions, domestic and international investors, and partner organizations.
Today, Mongolia’s housing finance market faces new challenges. The demand for housing remains high, and the need for long-term funding continues to grow. The financial market calls for solutions that are more stable, more efficient, and more market-based. This includes solutions for green housing.
Therefore, an important question lies before us: What kind of institution will MIK be over the next 20 years?
MIK will continue to be a leading financial institution that drives the development of a sustainable housing finance ecosystem in Mongolia, connects it with the capital market, and creates innovative financial solutions.
Close cooperation between the public and private sectors, together with long-term funding sources, will remain essential to the continued development of Mongolia’s housing finance system. Going forward, policy efforts will be needed to establish more sustainable funding by integrating long-term funds, such as pension and savings funds, into the housing finance ecosystem.
Through government policy and private sector initiatives, we will:
Through these efforts, we will work to build a housing finance system that is more accessible to the public, more sustainable for the financial system, and more reliable for investors.
We cannot know exactly how the founders of MIK envisioned its future 20 years ago, but today, we are part of the future they helped set in motion. The decisions we make, the reforms we pursue, and the systems we build today will shape the next 20 years.
We extend our heartfelt gratitude to the Bank of Mongolia and government institutions for their trust in us; to commercial banks for their collaboration; to domestic and international investors for their confidence in MIK’s securities; to international financial institutions and our partners; to the members of our Board of Directors and successive generations of MIK’s leadership for their continued support throughout our development; and to all those who have worked with dedication for MIK over the years.
B. Gantulga
Chief Executive Officer of Mongolian Mortgage Corporation HFC LLC
As the Mongolian Mortgage Corporation (MIK) celebrates its 20th anniversary, I extend my warmest wishes to our valued shareholders, government institutions, partner banks, investors, past and present MIK leadership and staff, and the people of Mongolia.
Together, we mark 20 years of trust in establishing and developing a new housing finance system in Mongolia.
In 2006, Mongolia’s housing finance market was very different from what it is today. Long-term funding was scarce, access to mortgage loans was limited, and the link between the capital market and housing finance was underdeveloped. In 2004, the newly established government committed to building 40,000 housing units. Under a project supported by the Asian Development Bank (ADB), Mongolia introduced its first mortgage lending program, with US$15 million in funding provided through seven commercial banks. In this context, MIK was established. On 6 October 2006, the Bank of Mongolia and ten private commercial banks jointly founded the company, which the General Authority for State Registration registered with an initial share capital of MNT 11 million. Today, MIK is a publicly listed company on the Mongolian Stock Exchange (MSE), with total assets of MNT 6.2 trillion.
MIK’s founding objective was simple: to develop Mongolia’s housing finance system by providing access to stable, long-term funding. Looking back today, we recognize that this objective was significant not only for the institution itself, but also for its broader socioeconomic impact on the lives and livelihoods of people across Mongolia.
Over the past 20 years, we have developed professional expertise, helped establish a new legal and regulatory framework, and advanced the secondary mortgage market by creating a mortgage securitization system. We have also established the foundations for linking long-term funding with housing finance. Through our Special Purpose Companies (SPCs) No.1-40, we have purchased MNT 9.3 trillion in mortgage loans. As a result, more than 145,000 households now enjoy the comfort of living in their own homes, including over 45,000 households that have moved from ger areas into apartments. This period has also seen a major expansion in construction, with 10 million square meters of new residential housing built across Mongolia.
Since 2017, Mongolia’s housing finance system has relied on repayments from residential mortgage-backed securities (MBS) for funding. This marked a transition in the system, advancing from the primary mortgage market to the secondary market. Behind this progress were MIK’s financial mechanisms, systems, technology, and, above all, the hard work of its people. This achievement reflects the collective efforts of MIK’s past and present leadership and staff, partner banks, the Bank of Mongolia, government institutions, domestic and international investors, and partner organizations.
Today, Mongolia’s housing finance market faces new challenges. The demand for housing remains high, and the need for long-term funding continues to grow. The financial market calls for solutions that are more stable, more efficient, and more market-based. This includes solutions for green housing.
Therefore, an important question lies before us: What kind of institution will MIK be over the next 20 years?
MIK will continue to be a leading financial institution that drives the development of a sustainable housing finance ecosystem in Mongolia, connects it with the capital market, and creates innovative financial solutions.
Close cooperation between the public and private sectors, together with long-term funding sources, will remain essential to the continued development of Mongolia’s housing finance system. Going forward, policy efforts will be needed to establish more sustainable funding by integrating long-term funds, such as pension and savings funds, into the housing finance ecosystem.
Through government policy and private sector initiatives, we will:
Through these efforts, we will work to build a housing finance system that is more accessible to the public, more sustainable for the financial system, and more reliable for investors.
We cannot know exactly how the founders of MIK envisioned its future 20 years ago, but today, we are part of the future they helped set in motion. The decisions we make, the reforms we pursue, and the systems we build today will shape the next 20 years.
We extend our heartfelt gratitude to the Bank of Mongolia and government institutions for their trust in us; to commercial banks for their collaboration; to domestic and international investors for their confidence in MIK’s securities; to international financial institutions and our partners; to the members of our Board of Directors and successive generations of MIK’s leadership for their continued support throughout our development; and to all those who have worked with dedication for MIK over the years.
B. Gantulga
Chief Executive Officer of Mongolian Mortgage Corporation HFC LLC
