Trading of “InvesCore NBFI” JSC’S Public Offering Bonds Starts in the Primary Market

2022-12-19 11:15:35

Ulaanbaatar /MONTSAME/. The bell ceremony to launch trading of “InvesCore NBFI” JSC’s public offering bonds in the primary market was held on December 12, 2022. The Vice-Chairman of the Financial Regulatory Commission (FRC) T. Tserenbadral, NBFI Department Director of FRC B. Itgelsuren, Regulatory Department Director of the Mongolian Stock Exchange A. Munkhbayasgalan and Business Operations Assistant Director of the InvesCore NBFI N. Arslanbaatar attended the ceremony.

In his opening remarks, T. Tserenbadral indicated that the FRC had implemented comprehensive policy and regulatory measures to increase the variety of technology-based products and services in the capital market, increase the engagement of securities issuers, investors and market participants, and enhance securities trading and liquidity, within the framework of ‘Developing the capital market and reducing financing costs by promoting competition’ as reflected in Parliament’s Strategy to Reduce Loan Interest Rates.

In particular, an existing regulation had been separated into two: the Regulation on Securities Registration and the Regulation on Bonds Registration, and the process of issuing public offerings has become easier; opening broader opportunities for domestic entities to raise funds by issuing IPOs and corporate bonds. Accordingly, the registration process of public offering bonds issued by companies that are listed in the Stock Board No.1 and selected as “TOP-100 entities” was simplified, and a framework to raise funds by offering all or part of its bonds to the public was created. The above regulations enabled domestic entities to raise funds more easily, from the capital market as compared to banks. “InvesCore NBFI” JSC issued its first IPO in 2019, and as of today, it had become one of the leading companies constituting the MSE Top 20 Index.

“InvesCore NBFI” JSC will raise a total of MNT50 billion as a part of the bond program. In this first tranche, it will raise a total of MNT10 billion. A nominal value is MNT100,000, the term is a 12-month, and the interest rate is 18%.