Central Asia

Mongolia slashes funding costs with $600 million bond issue

Time spent with global investors allowed the central Asian republic to slash funding costs and refocus the economy away from coal while paving way for a future issuance.
Equestrian statue of Genghis Khan from near Ulaanbaatar in Mongolia
Equestrian statue of Genghis Khan from near Ulaanbaatar in Mongolia

The government of Mongolia last week sold $600 million in debt that allowed the Central Asian republic to slash 575 basis points bp off its funding costs and pay off some expensive borrowings while paving the way for a future issuance.

It sold $600 million 5.5 year Reg S 144a paper with a 5.125% coupon. Demand was heavy, with books reaching $2.5 billion at their peak. The bonds were finally priced at 98.823 to yield 5.375%.

The size of the bond could have been higher but following a closely run election in late June, the new ministry of finance was keen to ensure a successful deal.

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 1 article from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222