Mongolian Government raises USD 800 million bond

2017-10-26 12:55:02
Ulaanbaatar /MONTSAME/ The Government of Mongolia issued a new bond of USD 800 million on the international market, said B.Choijilsuren, former Minister of Finance on Wednesday.

“I officially announce that Mongolia’s economic situation has been assessed positive. Specifically, a new bond was issued last night on October 25. The works on issuing new bond for the repayment of the 'Chinggis' and 'Dim Sum' bonds started on October 16. Our work was successful and the bond is now released,” Choijilsuren said.

The annual interest rate of the bond is 5.625 per cent and will mature in 5.5 years. Although the initial offer was to raise USD 660 million for investors, the offer from investors exceeded USD 5.8 billion.

The Former Minister of Finance B.Choijilsuren explained that he is holding the press briefing since he was the one who initiated the agreement and signed. He stated “This is just a debt exchange. Although the interest rate is 1.5 percent higher than Chinggis Bond, it could be perceived as a success considering the current economic state of the country. For instance, the Mazaalai bond, which was issued in May 2016 had 10.9 percent interest rate. Compared to this, the Government of Mongolia reduced the interest rate from 10.9 percent to 5.6 percent within 15 months.”