DBM Bond selected as Asia’s best deal www.montsame.mn
Ulaanbaatar /MONTSAME/. The Development Bank of Mongolia bond, which has no government guarantee, has been selected as one of Asia’s best deals on February 13.
The USD 500 million bond was successfully traded in the global market on October 16, 2018. As the bond had no government guarantee, it set a model interest rate for other creditors in Mongolia.
An offer of USD 4.1 billion--8 times more than the amount they put forward, was first received by the DBM. Analysts speculate that the high demand was due to the measures that were taken by the Government of Mongolia and the DBM in enhancing the relationship with foreign investors. Thus, despite the instability in the global market, he oversubscription allowed for a final pricing of 75 basis points inside the initial guidance. The 5-year notes carry a coupon of 7.25 percent, proving that the ideal environment for both the government and privately owned companies has been created, restoring investors’ trust.
Published Date:2019-02-19