Mongolian Market Updates | December 10, 2024

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🌄 Good morning!

Dive into the latest insights on Mongolia's economic and financial markets! This month’s “Monthly Market Update” include:

• Record-breaking milestones in the international bond market, including IFC’s first Mongolian Tugrik bond issuance.

• Positive trends in trade turnover, industrial output, and foreign exchange reserves.

• A look at Q3 GDP growth, stock market performance, and key sector developments.

• Special feature: Celebrating 90 years of Mongolia’s insurance sector.

🗞️ In this week’s newsletter:

• Client News

• Market News

🟣 Client News

Golomt Bank has successfully secured $100 million in bond issuance from international markets, priced with an 8.5% yield, bringing the total bond proceeds raised to $400 million.

👀 Key highlights from the recent deal:

• This $400 million issuance marks the largest by a Mongolian private sector entity since 2020 and the largest from a Mongolian financial institution since 2016.

• By pricing the new $100 million tap issuance at an 8.5% yield, Golomt Bank has reduced its funding cost by 350 basis points within just six months of entering the international capital markets. This also represents the lowest funding cost achieved by a Mongolian private sector issuer in the international bond market year-to-date.

• The tap issuance was driven by substantial reverse inquiries from high-quality global institutional investors, highlighting Golomt Bank’s growing recognition and credibility among international investors.

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🏛️ Market News

• Innovation Investment [MSE: QPAY] has moved up from Category III to Category II on the Mongolian Stock Exchange. The company also announced to distribute 70% of its half-year net profit, amounting to ₮3.7 billion, as dividends. The stock price has increased by 4.2% over two days, reaching ₮224.

• Trade and Development Bank [MSE: TDB] has issued $200 million bond on the international market with a 9% yield. The bonds are set to mature in 2027.

• KHAN Bank [MSE: KHAN] has seen its stock price increase by 15% to ₮1,156 since the release of its Q3 2024 report.

🟣CMM Services

Capital Markets Mongolia (CMM) specializes in providing strategic advisory to public companies on optimizing investor relations (IR) and advising on upcoming IPOs, bond issuances, and effective participation in the capital markets with a focus on efficiency and reputation. Additionally, we undertake market research and provide financial PR services.