Mongolia set for dollar return

摘要

Mongolia is set to return to the US dollar bond market this week, after reaching a US$5.5bn funding agreement with the International Monetary Fund on February 19. The following day, the country announced an exchange of state-owned development bank of Mongolia's 5.75% March 21 2017 bonds, which carry a state guarantee, into sovereign paper. Price guidance on the new seven-year sovereign notes indicated a minimum yield of 8.75%, far less than the 10.875% Mongolia offered on a US$500m five-year sovereign bond in March 2016.