Mongolian Market Updates | December 3, 2024

🌄 Good morning!

International Finance Corporation (IFC) has issued the largest-ever Mongolian tugrik (MNT) bond by a supranational entity, raising ₮102.5 billion (about $30 million).

This three-year bond, listed on the Luxembourg Stock Exchange, aims to enhance liquidity in Mongolia’s currency market and support projects driving economic growth.

🗞️ In this week’s newsletter:

• ToC Forum

• Pension Fund

• IR Outsourcing Service

• Market News

🟢 Mongolian Sustainable Finance Forum 2024

The Mongolia Sustainable Finance Forum was successfully held from November 27 to 29.

The forum focused on "Mongolia - Financing Green Development," discussing solutions for climate change, social inclusion, biodiversity, and energy-efficient housing.

📌 Detailed information on green financing is available in the CMM GUIDE: Green Financing.

🟣 Pension Fund

The Mongolian Association of Securities Dealers (MASD) and Capital Markets Mongolia announced a research grant program aimed at finding effective policy solutions in the financial sector.

👀 As part of this program, we present the first study, "Laying the Foundation for Pension Reform"

📑 The study examines the challenges of the current landscape, explores how to implement pension reform effectively, evaluates the role of the capital markets, and outlines potential solutions for Mongolia's future.

📌 The English version will be available soon.

👀 IR Outsourcing Service

🏦 Mongolia's Capital Market Overview 

There are 51 licensed securities companies, 2.5 million securities account holders, and over 3,000 active investors in Mongolia. The total market capitalization of 173 publicly listed companies across the first, second, and third tiers of the Mongolian Stock Exchange (MSE) has reached ₮11.6 trillion, according to the 2023 MSE report.

🟣 The Importance of Investor Relations (IR)

Becoming a publicly listed company brings new responsibilities, and maintaining effective Investor Relations (IR) is crucial. Successfully implementing IR function can strengthen a company’s position in the capital market, expand business opportunities, reduce costs, and attract targeted investors. But for many companies, building an IR team has been a challenge. 

🤝🏻 Our newly launched Investor Relations (IR) Outsourcing Service is designed to support companies in managing their investor communications and achieving their goals effectively.

🏛️ Market News

• Coal export reached 68.5 million tons in the first 10 months of 2024, a 26% increase compared to the same period last year.

• Shunkhlai LLC, which supplies 20% of Mongolia's fuel market, has issued a public bond to raise a total of ₮80 billion. The bond’s coupon rate is 17%.

• Mongolia's foreign currency reserves stood at $4.7 billion as of October, up 18.2% from the same period last year.

• Export reached $13.2 billion by October 2024, a 5.9% rise compared to last year, while import increased by 26.8%, reaching $9.6 billion. The trade balance dropped 26.2% year-on-year, amounting to $3.63 billion.

🟣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.