Last Friday, The Development Bank had announced that it will issue USD 600 million in bonds on the Singapore Stock Exchange in 2012. The bonds will be issued with the assistance of global financial giants ING, Deutsche Bank, and HSBC. Prime Minister S.Batbold and Finance Minister S.Bayartsogt attended a signing ceremony for the agreement in the Government House on December 2. The Prime Minister stated that Mongolia will become partners with global financial giants and the bonds will help to succeed large projects in Mongolia.
The bonds will be the first sold on the international market with the backing of the Mongolian government. Officials say the terms will be good, despite uncertainty in the international financial markets. The DB says the bonds will finance programs and projects that promote development and economic growth, produce value-added products, and reduce Mongolia’s dependence on imports. Specifically, the bonds will finance railroad projects, the Sainshand industrial complex, road construction projects, and energy projects.