LIQUIDATION OF CAPITAL BANK
On April 8th, 2019, the Bank of Mongolia announced that under article 19 section 19.1, article 28 subsection 28.1.2 of the Central Bank Law, and article 68 section 68.1 of the Banking Law, the Governor of the Bank of Mongolia issued ordinance A-96 to liquidate Capital bank.
MIK HFC LLC issued a 3-year term, USD 300 million bonds on February 12th, 2019 to purchase mortgages with recourse from commercial banks. The mortgage purchase plan for bond proceeds did not include the purchase of loans from Capital bank, therefore, we do not anticipate the bank’s liquidation to have an impact on this transaction.
Capital bank owns 1.7% of MIK Holding JSC’s shares and acts as a service provider for 3.1% of total mortgages purchased by MIK HFC and MIK Asset Special purpose companies. As a result of liquidation, subsequent actions are anticipated with relation to the transfer MIK Holding JSC’s shares held by Capital bank and selection of a new service provider to replace Capital bank for purchased mortgage loans.
LIQUIDATION OF CAPITAL BANK
On April 8th, 2019, the Bank of Mongolia announced that under article 19 section 19.1, article 28 subsection 28.1.2 of the Central Bank Law, and article 68 section 68.1 of the Banking Law, the Governor of the Bank of Mongolia issued ordinance A-96 to liquidate Capital bank.
MIK HFC LLC issued a 3-year term, USD 300 million bonds on February 12th, 2019 to purchase mortgages with recourse from commercial banks. The mortgage purchase plan for bond proceeds did not include the purchase of loans from Capital bank, therefore, we do not anticipate the bank’s liquidation to have an impact on this transaction.
Capital bank owns 1.7% of MIK Holding JSC’s shares and acts as a service provider for 3.1% of total mortgages purchased by MIK HFC and MIK Asset Special purpose companies. As a result of liquidation, subsequent actions are anticipated with relation to the transfer MIK Holding JSC’s shares held by Capital bank and selection of a new service provider to replace Capital bank for purchased mortgage loans.
