Mongolian Market Updates | July 9, 2024

😁 Good morning,

As mentioned in our previous newsletter, the anticipated outcome has materialized a new three-way coalition government was formed this week by the Mongolian People’s Party (MPP), Democratic Party (DP), and HUN. This coalition will shape Mongolia’s economy and society in the coming years. Forming a coalition was a strategic move by the MPP to bypass constitutional safeguards, extending their power beyond their electoral mandate. While this raises concerns about undermining checks and balances, for the MPP, it's a calculated move with an eye on the 2027 presidential and 2028 parliamentary elections.

In this week’s newsletter:

• Mongolian Economic Forum 2024

• Market News

• MinePro 2024 event

Mongolian Economic Forum 2024

The 2024 Mongolian Economic Forum began on Monday, June 8th, and will be held for two days event aims to promote economic growth and explore solutions to Mongolia's pressing issues. Last year's MEF saw representatives from 45 leading global banks and financial institutions, including Goldman Sachs, Morgan Stanley, Citigroup, and many more. This year around 2000 domestic and foreign representatives are participating in the annual economic forum under the motto "Go Mongolia”. This edition of the event is unique as it takes place right after the election.

During the opening ceremony of the annual economic event, Mongolian Prime Minister Luvsannamsrai Oyun-Erdene highlighted the government's address to Mongolia's pressing development challenges through the implementation of the government's next four-year economic plan. The new government's committed to restructure the government, liberalize energy tariffs, and advance mega projects. He emphasized an old Mongolian saying, "Mongolians' 'yes' is a promise" assuring foreign investors that Mongolia will uphold its commitments.

During a session moderated by Richard Quest, the Prime Minister was asked to outline the government's commitments for the coming year. He listed the following priorities:

• Establishing a stable environment for investment

• Improving the business climate by involving more stakeholders

• Enhancing Mongolia's reputation as one of the best places to do business

The following day’s discussion will be focused on the investment themes and opportunities.

🏦 Market News

• Bogd Bank JSC has released its financial statements for the second quarter. The bank reported a profit of MNT 15 billion for the period, from which 25%, or MNT 3.75 billion, will be distributed as dividends.

• Monlogistics Group has expanded its operations by acquiring a 51% stake in "Central Asian Road" LLC, a subsidiary of TESO Group, through a strategic investment.

• Fitch Ratings has affirmed the long-term credit rating of the Development Bank of Mongolia at "B" with a stable outlook.

• Khan Bank JSC issues Mongolia’s first social bond, attracting investment from the International Finance Corporation (IFC). Sustainable Fitch issued a secondary opinion on the transactions under Khan Bank JSC’s social bond framework, confirming full alignment with the ICMA Social Bond Principles. The opinion rated the framework's alignment as 'Excellent'.

• Xac Bank JSC net profit after tax for the first half of 2024 was 85.3 billion MNT, reflecting a 38.3% increase compared to the same period last year.
  

📢 MinePro 2024 📢

CMM will co-organize the MinePro 2024 International Quarrying and Mining Exhibition & Convention on October 10-12.

The "MinePro 2024" exhibition will feature various stakeholders including supplier enterprises, mining project owners, international investors, financial institutions, consulting services, technology providers, and other service providers.

This event will serve as a platform for knowledge exchange, strategic partnerships, and investment opportunities, with a specific focus on advancing sustainable mining practices and driving innovation in the Asian market. We aim to promote mutually beneficial global partnerships among local mining companies, development agencies, and international and local financial organizations. For more detailed information about the event, please click HERE.

If you are interested in participating in the event, please click HERE to register.

🟣CMM Services

Capital Markets Mongolia (CMM) specializes in providing strategic advisory to public companies on optimizing investor relations (IR), as well as 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.