Mongolia/Business Loans to JV Leasing Company
(Insurance for Loans to TDB Leasing LLC)

June 5, 2019

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI, Chairman and CEO: Kazuhiko Bando) has decided to provide insurance for loans made by MG Leasing Corporation (MG Leasing) and Mitsubishi UFJ Lease & Finance Company Limited (MUL) to TDB Leasing LLC (TDB Leasing), a Mongolian joint venture company between MG Leasing and Trade & Development Bank of Mongolia, the country’s major commercial bank.

NEXI provides insurance for loans of approximately JPY 5.1 billion in combined value* to be extended by the aforementioned two Japanese companies over the next year. This is the ninth insurance that NEXI has offered for loans to TDB Leasing made by MG Leasing since 2014. Additionally, it is the first case for TDB Leasing to raise funds from a company without any capital relationship, which contributes to the Mongolian company’s diversification of fundraising.

TDB Leasing is engaged in leasing and installment sales in Mongolia. The company purchases mining machinery and equipment and so forth to lease out to local mining and infrastructure companies. There has been a growing demand especially for mining machinery and equipment in Mongolia endowed with copper, gold and other mineral resources. Through its insurance support, NEXI is expected to contribute not only to developing mineral resources development in the country but also to assisting MG Leasing with its overseas business.

As Japan’s policy-based financial institution, NEXI will continue to actively support the international business development of Japanese companies.

Borrower TDB Leasing LLC
Insureds MG Leasing Corporation
Mitsubishi UFJ Lease & Finance Company Limited
Insured amount Approx. JPY 5.1 billion

* Bilateral loan financed by MG Leasing: JPY 3.82 billion
Syndicated loan financed by MG Leasing and MUL: JPY 0.64 billion each

Tenors Bilateral loan financed by MG Leasing: Approx. 5 years
Syndicated loan financed by MG Leasing and MUL: Approx. 4 years
Covered risk Political risk 100%

Contact: Infrastructure Group, Structured and Trade Finance Insurance Department
Tel: +81-(0)3-3512-7674