TransBank, Credit Bank marks first day of merger

The merger was approved by the Bank of Mongolia last July.

The Transport and Development Bank LLC and Credit Bank LLC marked the first day of their merger yesterday, 25 August, after the Bank of Mongolia rubber-stamped the decision last 28 July.

The merger is part of the plan to convert TransBank into a closed joint-stock company in accordance with the Mongolian Banking law.

According to the details of the merger, it will close with a share swap with no share premium involved. All assets, liabilities, equities, and branches of Credit Bank will be consolidated into TransBank.

Additionally, the merger will result in a larger loan portfolio and branch network, whilst the composition of the loan portfolio will broadly be unchanged, with relatively high exposures to corporates. The merged entity is planning to gradually increase its retail loans over the next 12 to 18 months, to around 20% of the total loan portfolio from 14% at the time of the merger. 

TransBank, headquartered in Ulaanbaatar, Mongolia, had total assets of $126.2m as of the end of December 2020.