Mongolia Dim Sum underwhelms

摘要

Mongolia broke new ground last week as the first high-yield sovereign to price a Dim Sum bond, but some market participants said the offering's small size and investor reception were disappointing. Mongolia priced a three-year Rmb1bn (US$161m) offshore renminbi bond to yield 7.5%, flat to initial guidance in the mid-7% area. Orders for the sovereign bond ended at Rmbl.5bn, slightly down from Rmbl.7bn during bookbuilding. "This landmark transaction is the first CNH [renminbi] bond from an Asian sovereign, and the first high-yield CNH bond from a sovereign globally," said Kathy Liu, head of international debt capital markets at Citic CLSA Securities. "We have seen Dim Sum bond issuances from UK, Canada and Australia, but these are very developed countries."