Press Release
Development Bank of
Mongolia has successfully issued its bonds and on good terms
The Development Bank of Mongolia has opened a new page
of history in Mongolia’s banking and financial sector with its US$ 600 million
Euro Medium Term Note Program, in coordination with its internationally recognized partners in ING,
Deutsche Bank and HSBC.
International rating agencies, Moody’s
and Standard&Poor’s have rated the
Development Bank of Mongolia’s bonds similarly to the Government of Mongolia, Moody’s - (B1),
S&P - (BB-).
The Development Bank of Mongolia’s
bonds are the first sovereign bonds issued with the guarantee of the Government
of Mongolia. Although the world capital market situation is not favorable at
present, the Development Bank of Mongolia managed to issue the bonds in the
best terms and at a low interest compared with countries in a similar situation.
The
five-party agreement to establish this program will be signed by S. Bayartogt,
Finance Minister on behalf of the Government of Mongolia as the Guarantor and
Kim, Jang Jin, CEO of the Development Bank of Mongolia. At this moment the
representatives of the investment banks are also signing the agreement in their
respective countries.
DBM aims to provide financing
for large scale projects in priority and strategically important sectors to support
economic growth and the production of value-added goods. It shall provide the
funds to the following priority sector projects and programs, approved by the
Parliament:
·
New Development medium term target program;
·
State policy on Railway transport program;
·
Sainshand Industrial Park; and
·
Projects and Programs included in the List of auto roads and energy
facilities to be built using DBM’s own funds with a condition of to be paid
later.
The
EMTN Program established by the Development Bank of Mongolia provides an
opportunity to start financing these strategically important projects and
programs and within this program the bonds worth US$ 600 billion are planned to
be sold in several stages through the Singapore Stock Exchange this December
and into 2012.
We are pleased to inform you that the
initial takedown of US$ 20 million will be transacted shortly. The program
which we have established today represents the foundation upon which DBM will
expedite the construction work that is so eagerly anticipated and through which
DBM will make its valuable contribution to Mongolia’s successful development.
We
are cooperating with ING, Deutsche bank and HSBC, all of which are
internationally reputable and experienced investment banks, to implement the
Euro Medium Term Note Program.
Global
investment bank ING, headquartered in the Netherlands, has been carrying out
investment activities in Mongolia for the last three years. It cooperates with
domestic banks, such as Khan bank and Trade and Development Bank and has
profound experience and knowledge about the economy and business sector of
Mongolia.
Deutsche
bank, a global investment bank with a history of 141 years, provides its
services in over 70 countries worldwide. In the third quarter of 2011 it was
named the top bank in the Euro bond markets according to Bloomberg reports.
HSBC,
with its history of 146 years, is considered a reputable and leading bank in
international stock markets. It is headquartered in London and operates in 87
countries around the world. According to Bloomberg reports it is ranked closely
behind Deutsche bank in the Euro bond markets.
DEVELOPMENT BANK
OF MONGOLIA
