Central Asia

ADB sells first Mongolian Nomad bond

The first tugrik-linked bond from Mongolia will help to fund a local dairy company and sets a much-needed benchmark in the country's capital markets that remain constrained by Covid-19.

Hot on the heels of Kazakhstan’s debut Falcon bonds in April, Mongolia is the most recent Central Asian republic to issue offshore debt in its national currency and in doing so has created the first Nomad bonds.

Their name harking back to the nomadic lifestyle on the Mongolian steppe, the Asian Development Bank has sold a MNT21 billion $7.5 million five-year bond at 10.1%.

Denominated in tugrik, but settled in US dollars, the paper was underwritten by ING Bank and sold to an unnamed European asset manager.

“This is a milestone transaction for ADB’s local currency operations,” said ADB treasurer Pierre Van...

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