Mongolian Market Updates | February 25, 2025

🌄 Good morning!

The Government of Mongolia successfully issued a new bond in the international market.

🗞️ In this week’s newsletter:

• Market Update

• Mongolia Investment Forum

• Market News

🟣 Market Update

Last week, the Government of Mongolia issued a new bond with a coupon rate of 6.625% and a maturity of 5 years. This bond will finance the Mongol 2026 and Mongol 2028 repurchase.

The Mongolian credit rating upgrade increased the trust in government-issued bonds; the initial order of this bond exceeded the trading volume about 8 times.

During the trading of the "Century IV" bond, countries like Uzbekistan, Brazil, and the Dominican Republic—each with higher credit ratings than ours—issued bonds. However, Mongolia secured interest rates that were 0.1 to 0.4 percentage points lower than those of these nations.

The Minister of Finance B. Javkhlan mentioned that the bond issue was quite successful this time due to the high initial order demand bond spread dropping to 2.27%, an all-time low.

In the 2024 fiscal year, the Fitch Rating Agency upgraded Mongolia’s credit rating to “B+/stable,” Moody’s Agency upgraded to the “B2/positive” classification. Due to this rating upgrade, international investors were interested in bond issuance, and this could be a headwind for foreign investors to recognize the investing opportunities in Mongolia.

🟣 Mongolia Investment Forum

Mongolia Investment Week will once again take place in New York, marking its second consecutive year. Committed to strengthening Mongolia's capital markets and attracting global investor interest, CMM hosts this annual event to foster investors engagement.

The inaugural Mongolia Investment Week, held on April 22–23, 2024, in New York, facilitated direct discussions between representatives from Mongolia’s banking and finance sectors and key figures from U.S.-based financial institutions, rating agencies, and investment funds.

This year's event is scheduled for April 28–29, 2025, in New York, and official registration is now open.

🔗Registration link: https://capitalmarkets.mn/events/new-york-2025

🏛️ Market News

• Mandal Daatgal JSC [MSE:MNDL] declared a dividend of ₮8.1 per share.

• Ulaanbaatar Hivs JSC [MSE:UBH] declared dividend of 2000 per share and set the record date as March 15th.

• Mongol Post JSC [MSE:MNP] announced that in the near future, they will test drone delivery service in Mongolia during an Earnings Call event by CEO G. Telmen.

• Baganuur JSC [MSE:BAN] declared a dividend of ₮23.62 per share, 30% of net income in 2024. The record date will be the same as the stockholder's meeting, and the dividend payment date is April 25th.

🟣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.