Mongolian Market Updates | November 19, 2024

🌄 Good morning!

Moody's has upgraded Mongolia's long-term issuer and senior unsecured ratings from B3 to B2, with a stable outlook. 

This reflects significant progress in debt management, reduced refinancing risks, and strong growth prospects driven by copper mining.

🗞️ In this week’s newsletter:

• IR Outsourcing Service

• CMM Guide: Green Finance

• Market News

👀 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.

🟣 CMM Guide: Green Finance

🟢 Green Taxonomy

A comprehensive framework for green financing, consisting of 8 main categories, 28 subcategories, and 58 technology provisions, with classifications, definitions, and criteria for environmentally friendly activities.

♻️ If your project, activity, or planned purchase aligns with any of these criteria, you may qualify for green loans from banks and financial institutions.

Stay informed about the scope of green financing by exploring the detailed information provided in CMM Guide: Green Finance.

🏛️ Market News

• The GDP growth rate for Q3 2024 was recorded at 5%, marking a decline compared to the 7.22% growth observed last year. However, nominal GDP demonstrated significant expansion, increasing from ₮47.4 trillion in Q3 2023 to ₮56.2 trillion in Q3 2024. Real GDP, constant 2015 prices, grew from ₮21.8 trillion to ₮22.8 trillion.

  The mining sector experienced a notable growth of 11.4%, reaching ₮14.5 trillion.

  The transportation sector saw the most significant growth, expanding by 15.7% to reach ₮3.7 trillion.

• Trade and Development Bank [MSE: TDB] has raised $50 million through social and green bonds on the international market. Of this amount, $40 million will be allocated to green loans and $10 million to social loans.

• The International Finance Corporation (IFC) is in discussions to provide $150 million in financing to Golomt Bank [MSE: GLMT].

• A total of 402,000 shares of Invescore NBFI [MSE: INV] were traded in a block trade, valued at ₮3.2 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.