Why Mongolia’s Debt Market Is Attracting Strong Investor Appetite www.thediplomat.com

In recent months, Mongolia has tapped into its financial market, aiming to boost investor confidence and attract funding from diverse sources. Mongolia's debt market has witnessed a surge in investor interest, which can reflect growing confidence in the country's economic trajectory.

In 2024, Mongolia experienced a strong capital inflow - raising more than $1.2 billion - which can be attributed not only to the country's economic recovery but also some structural changes. The International Monetary Fund Concluding Statement stressed that "[t]he adoption of a nominal debt ceiling of 60 percent of GDP is a major step forward in strengthening Mongolia's fiscal rules..." but warned that domestic policymakers need to be vigilant on emerging risks.

Mongolia's economy and investment environment require constant global engagement. While Mongolia's landlocked position limits its exposure, it is having new success attracting businesses and investments. Market participants are now speculating on another possible credit rating upgrade, further bolstering investor sentiment. Fitch Ratings upgraded Mongolia's sovereign credit rating from B- to B with a stable outlook in September 2024.

The Mongolian government recently issued $650 million sovereign bond, priced at the tightest spread in the country's history at 6.85 percent, which underscores the heightened demand. This milestone showcases Ulaanbaatar's ambition and goals to access international capital markets at increasingly favorable terms.
Last week, the Bank of Mongolia made another major decision to stimulate growth and curb inflation, while. According to the central bank, the newly passed monetary policies have three aims. First, it will increase the policy rate by 2 percentage points to 12 percent. Second, it will reset the upper limit of the debt service-to-income (DSTI) ratio to 50 percent for banks' newly issued and restructured consumer loans. Third, for loans secured by pension and benefit income, the borrower's remaining income after paying the monthly loan installments shall be no less than the minimum subsistence level.

Beyond sovereign debt, Mongolia's corporate bond market is also gaining momentum. In June 2024, Golomt Bank led the way with a successful $300 million bond issuance, later tapping an additional $100 million due to strong investor demand. This transaction set a crucial benchmark for other financial institutions considering international bond issuances. Following Golomt's lead, other Mongolian banks and corporations are evaluating similar capital-raising strategies to enhance liquidity and fund expansion.

Trade and Development Bank (TDB) became a trailblazer by issuing Mongolia's first international green and social bonds, signaling a growing commitment to sustainable capital raising. This move aligns with global investor demand for instruments that acknowledge the importance of environmental, social, and governance (ESG) factors and sets the stage for further ESG-related financial innovation in the country.

In Ulaanbaatar, the mayor's office also issued the country's first municipal bond, successfully raising $500 million. The subnational issuance will help to diversify Mongolia's debt instruments and strengthen investor confidence in municipal-level fiscal management. The funds raised will be directed toward critical infrastructure projects, including transportation, energy, and urban development, enhancing the capital city's long-term economic sustainability.

Despite these positive trends, there are notable challenges and risks. Geopolitics and disruption in financial markets can impact investment, the debt market, and fixed-income investments.

Global interest rate movements will also impact Mongolia's cost of capital. If other major central banks maintain high interest rates, emerging markets like Mongolia may face increased borrowing costs, potentially limiting future debt issuances.

On the domestic front, concerns are growing that the government's push to implement 14 mega-projects-largely dependent on state procurement could fuel inflation. Higher prices could erode real returns on fixed-income investments. In its March meeting, the Bank of Mongolia warned that "inflation is projected to remain above the Bank of Mongolia's target range throughout this year," adding, "If upcoming mega projects are financed through domestic sources, heightened pressures on the balance of payments and the exchange rate could further accelerate inflation.

Another key challenge is ensuring the sustainability of Mongolia's debt. The surge in the bond market comes with concerns about burdening future generations with excessive debt. While investor confidence is strong, the government must remain vigilant about maintaining fiscal discipline, avoiding excessive reliance on external borrowing, as well as tackling corruption and transparency.

For now, though, Mongolia's debt market looks promising, offering diverse options such as sovereign bonds, corporate debt, green financing, or municipal bonds. For investors seeking exposure to high-growth frontier markets with improving credit fundamentals, Mongolia presents a compelling case. The Mongolia Investment Forum, which will take place in New York in April, will seek to further capitalize on these positive trends in Mongolia's financial market.

By Bolor Lkhaajav and Zolbayar Enkhbaatar

Mongolia exports over 10 mln tons of coal in first 2 months of 2025 www.xinhuanet.com

Mongolia exported 10.2 million tons of coal worth 858.8 million U.S. dollars in the first two months of 2025, local media reported on Wednesday, citing official data released by the country's Ministry of Road and Transport.
The figure decreased by 35.7 percent in terms of value and 3.4 times in physical volume compared to the same period last year, the data showed.
The mining sector remains one of the main pillars of the Mongolian economy, as the country is rich in natural resources such as gold, silver, copper and coal.
A significant share of Mongolia's coal production is accounted for by the Tavan-Tolgoi coal deposit, which is one of the world's largest untapped coking and thermal coal deposits, located in the southern Mongolian province of Umnugovi. It has a total estimated resource of 6.5 billion tons, one-quarter of which is high-quality coking coal.

Mongolian MP alleges political interference in late-night detention of independent media company employees www.asianews.network

The Standing Committee on Justice convened to discuss the late-night detention and interrogation of “Noorog” content creators. During the session, MP Ch.Lodoisambuu voiced strong criticism of the police, alleging political interference.
“It is clear from the response of the head of the Police Legal Department that the state is manipulating the narrative. Only one person from ‘Noorog’ was detained, not three. So why are you providing misleading information about the three?” he questioned.
Ch.Lodoisambuu, speaking from his own experience as a journalist, claimed he was also detained for expressing his opinion. He recounted, “I wanted to see the video these young people created. Then their computers were confiscated. However, public outrage was so strong that the police didn’t anticipate how well-known ‘Noorog’ actually was.”
He accused the authorities of acting under political pressure. “The police tried to fulfill the orders of the Prime Minister’s family. Later, it turned out that one of the members was involved in online gambling. But what is the direction now? Minister of Justice O.Altangerel is distorting facts and attacking press freedom,” he asserted.
Ch.Lodoisambuu further criticized the long standing political practice of suppressing dissent. “This is nothing new. When Kh.Nyambaatar was Minister of Justice, he used to map out and plan detentions. That ‘tradition’ continued under Minister B.Enkhbayar. Will the current minister put an end to this? It’s been five days—why hasn’t the seized equipment been returned? How long does it take to copy files?”
He commended Chairman D.Tsogtbaatar for organizing the discussion, emphasizing the growing disconnect between the government and the people. “The leaders of this country don’t see beyond the Internet. They only perceive society as it appears online. And these are the people leading us.”
Ch.Lodoisambuu also raised concerns about corruption within law enforcement. “Who appoints the Chief of Police? The Parliament, based on the Prime Minister’s proposal, right? Just yesterday, a man went live, revealing that MNT 9 billion had been deposited into a single account. He claimed a police officer was receiving bribes of MNT 75 million per month. Such a massive case could not have happened without support from within law enforcement. This trail must be investigated and exposed,” he urged.

Choi Jin-won: Research in rare earth metal sector is intensifying www.gogo.mn

L.Oyun-Erdene, Prime Minister of Mongolia, met with Choi Jin-won, Ambassador Extraordinary and Plenipotentiary of Republic of Korea to Mongolia, to mark the 35th anniversary of diplomatic relations between the two nations.
During the meeting, the Prime Minister reviewed the achievements of the long-standing partnership, highlighting South Korea as Mongolia’s key "third neighbor" and an essential regional partner. He reaffirmed Mongolia’s commitment to deepening economic cooperation, increasing bilateral trade and investment, and expediting joint projects and programs.
Among these projects, he specifically emphasized the need to accelerate the "Solongo-I, II" residential developments and the "10 province central heating station" initiative. He also urged South Korean authorities to facilitate travel conditions for Mongolian citizens and ensure the protection of Mongolians residing in Korea, in line with efforts to strengthen people-to-people exchanges.
Ambassador Choi Jin-won expressed his satisfaction with the progress of the "Strategic Partnership" between the two countries, particularly in urban development, minerals, and energy. He highlighted the ongoing negotiations for an Economic Partnership Agreement and noted that agreements made during the Mongolian Prime Minister’s visits to Korea in 2023 and 2024 are already being implemented.
A key area of focus is the rare earth metal sector. The ambassador confirmed that a joint committee meeting on rare earth research was recently held in Seoul and that research efforts are being intensified. He also reaffirmed South Korea’s commitment to expanding economic cooperation, supporting bilateral projects, and improving travel conditions for citizens of both countries.

Revised Feasibility Study for the Ulaanbaatar Metro Project to Be Submitted to the Government www.montsame.mn

The Citizens Representative Khural of the Capital City of Mongolia held its fifth irregular session and discussed the revised feasibility study for the Ulaanbaatar Metro Project. A majority of the representatives voted in favor of the revised feasibility study for the Project and agreed to submit the draft Resolution to the Government.
Member of the Citizens Representative Khural and Coordinator of the Capital City Finance, Economy and Development Intensification Projects and Programs L. Khosbayar said, “The issue of constructing a metro in Ulaanbaatar was initially raised in 2011, and the Government issued Resolution No. 411. As a result, the selection for international management consulting services of the project was organized in two stages, and the leading consortium consisting of Korean companies “Dohwa Engineering,” “Korea Railroad, “Soosung Engineering,” and “Korea National Railway” won the bid, and the contract was signed on July 5, 2025.”
"The first line of the metro is planned to be 19.4 km long, with 15 stations and one depot, along Enkhtaivan Avenue from Tolgoit to Amgalan. Of this, 19.4 km, 14 stations will be underground, and one station will be at ground level. As the first line of the metro is mainly underground, tunnels and stations will be built by the cut-and-cover method, which involves digging a trench, constructing the station, and then covering it back up. The tunnel boring machine will be installed at a depth of 10-25 meters. The cost of the metro project is estimated to be USD 2.4 billion, as approved by professional organizations. 97.7 percent of the budget will be spent on construction work, while the remaining amount will be used on other work such as customer supervision and land acquisition. For funding the Project, 15 percent will be funded by the Capital City Budget, while 85 percent will be generated from external sources. We are holding discussions and meetings to attract investment," said Coordinator Khosbayar.
The Ulaanbaatar Metro Project will be implemented in line with 28 national standards, 56 international standards, while ensuring coordination of the relevant laws and regulations of Mongolia.

Mongolia and China Exchange Views on Cooperation in Addressing Desertification www.montsame.mn

Minister of Environment and Climate Change of Mongolia Odontuya Saldan received Ambassador Extraordinary and Plenipotentiary of the People's Republic of China to Mongolia Shen Minjuan on March 26, 2025.
At the meeting, Minister of Environment and Climate Change of Mongolia and Chairperson of the National Committee in charge of the Management and Coordination of Preparations for the 17th Conference of the Parties (COP17) to the United Nations Convention to Combat Desertification (UNCCD) to be held in 2026 in Mongolia Odontuya Saldan, presented the preparation plan, as well as the policies and initiatives proposed by Mongolia. The two sides exchanged views on cooperation between Mongolia and the People’s Republic of China in organizing COP17 and addressing desertification.
Ambassador Shen Minjuan noted that China hosted COP13 in 2017 and expressed China’s willingness to share experience, provide support, and cooperate with Mongolia. The Ambassador also highlighted that the joint establishment of a Desertification Research Center between Mongolia and China marks the beginning of a long-term collaborative effort in combating desertification.

Tsepelis, Wesley proud as Bishrelt Metal take 'big step' for Mongolia basketball www.fiba.basketball

KUALA LUMPUR (Malaysia) - Bishrelt Metal found themselves celebrating far greater glory following a successful debut in the Basketball Champions League Asia-East (BCL Asia-East) 2025 on Tuesday night.
The crew overcame a late-game scare by the hard-fighting NS Matrix to ace their lone test in Window 1 of the five-leg tourney, in the process writing history - not just for the ball club, but for an entire nation as well.
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"This win is not just for our team, but for the whole country of Mongolia."
In beating the Deers on their own home floor at the MABA Stadium, they became the first-ever Mongolian professional basketball team to win an away game in a FIBA continental club competition.
"I think this is a big step for Mongolia," said Coach Evangelos Tsepelis shortly after their 98-86 victory "Teams every year want to step up. For this season we try to play real basketball, and we have this result."
Bishrelt Metal, along with fellow The League outfit Ulaanbaatar Xac Broncos, never had a chance to do as much back in the BCL Asia Qualifiers last year after failing to advance to the Second Round.
Round 1 of the saiid tilt was held at the UG Arena in the Mongolian capital and both squads fell short of booking their tickets to Jakarta, Indonesia as the both of them won just once in their three games.
NS Matrix and Pelita Jaya Basketball eventually emerged as the two teams that secured their spots the BCL Asia inaugurals and now, those two are with Bishrelt Metal in Group A of the BCL Asia-East.
That's why Tuesday was a rematch between Bishrelt Metal and the Deers, with the former earning some sweet payback as the latter was the reason why they fell to a 0-2 hole during the 2024 Qualifiers.
But then, what most will remember, especially the Mongolian fans, was the history they made, leaving the decorated Tsepelis beaming with pride as it was also their first game outside of the country this season.
"I'm very happy with this result. I'm very proud of my players. For us this is our first game outside the country. The most important thing for us is to stay together and so we took a big win," the Greek mentor said.
It couldn't get more fitting, too, that helping Bishrelt Metal achieve such a feat were a pair of seasoned internationalists that have experienced competing in the BCL: Byron Wesley and Devon Scott.
Formerly of Kataja Basket (2016) and Lukoil Academic (2017), Wesley flirted with a triple-double with 34 points, 9 rebounds, and 8 assists as he came through in the clutch when the home team chopped a 20-point gap to just six.
Scott, on the other hand, finished with 24 points, 10 rebounds, 5 assists, and 2 steals as the 2.06 (6'9") forward showed the same versatility he flexed with Flamengo in the BCL Americas just two years ago.
"Me and Scott, we have experience playing in BCL before so we felt comfortable out there. And down the stretch, we wanted to let our experience show," said Wesley, who scored and assisted in the team's last six points.
Wesley, however, refused to take all the credit to him and Scott, saying that it was a collective effort that enabled the crew to pull off the memorable result - one that he couldn't help but feel so proud to have been a part of.
"But it was a team effort. We had a lot of big contributions from a lot of Mongolian guys so credit to my teammates. We played like a team, everybody played unselfishly," said the 1.96 M (6'5") winger, who also played in FIBA WASL.
"This win is not just for our team, but for the whole country of Mongolia."
FIBA

Minister Ts.Tuvaan: Mining exchange trading to resume soon www.gogo.mn

Ts.Tuvaan, Minister of Industry and Minerals, announced that trading on Mongolia’s mining exchange is set to resume soon following key regulatory adjustments.
"We have made changes to the exchange regulations," the Minister stated. "For example, we have developed and revised a price index that fluctuates in accordance with coal prices. When coal prices were high, exchange trading under strict conditions proceeded smoothly. However, when prices declined, maintaining rigid requirements over an extended period caused significant financial losses for buyers. This, in turn, led to a slowdown in coal withdrawals, resulting in excessive stockpiling at the border and logistical congestion".
To address this issue, the Ministry introduced a dynamic price index that adjusts based on market trends. This revision has already led to promising results, with the first round of trading generating purchase orders for one million tons of coal. If this trend continues, it is expected that mining exchange operations will fully resume in the near future.

Trafigura’s $1.1 Billion Mongolia Fraud Was ‘Humbling,’ CEO Says www.finance.yahoo.com

(Bloomberg) -- Trafigura Group’s $1.1 billion loss in a suspected multi-year fraud in Mongolia was a “humbling experience,” the trading giant’s new chief said in his first public comments on the scandal.
Richard Holtum, who took over as Trafigura chief executive officer in January, said that he was encouraging the company’s traders to speak up if they saw things that did not make sense.
“I think had our people been empowered to ask the question why, maybe we’d have caught this much earlier,” he said at the FT Commodities Global Summit in Lausanne, Switzerland.
Trafigura said in October that it faced a loss of $1.1 billion in Mongolia as a result of manipulation of what it described as data and documents and deliberate concealment of overdue debts by its own employees. It was the second highly embarrassing loss to hit the trading house in as many years, after it revealed a loss of over $500 million in an alleged nickel fraud the previous year.
Holtum said that Trafigura had missed the giant losses in the tiny oil market of Mongolia because its office in the country was isolated from the rest of the company, partly as the Covid-19 pandemic prevented executives from traveling there. There was also a “language issue,” with a limited number of Mongolian speakers in Trafigura’s wider staff, he said.
“That in no way is to excuse what happened, but that is essentially how it happened,” he said.
The CEO said he could not guarantee that Trafigura would not be a victim of fraud again in the future, but that the company had upgraded its “plumbing” to try to prevent similar issues.
The loss has been “an enormous catalyst for change internally, because people felt that pain in their pockets and realized and knew that this could not continue,” he said.

Mongolia Reports 211 Foreign Visitors Unable to Enter in Early 2025 www.montsame.mn

In the first two months of 2025, a total of 211 citizens from 12 countries were denied entry to Mongolia by the Immigration Agency of Mongolia. Of the people who were refused entry, 148 were citizens of the People's Republic of China, 24 were citizens of the Republic of Korea, and 19 were citizens of the Republic of Uzbekistan.
Last year, 2,084 citizens from 30 countries were denied entry due to reasons such as failure to specify the purpose of their arrival, visa type did not match the purpose of their stay in the country, lack of proof of financial subsistence, and expired visas. Of these, 1,238 were from the People's Republic of China, 486 from the Republic of Korea, 167 from the Republic of Uzbekistan, 47 from the Republic of Azerbaijan, 42 from the Republic of Kyrgyzstan, and 105 from other countries.
Mongolia eased visa requirements and started issuing electronic visas to promote tourism and increase the number of tourists. However, the number of citizens being turned back from the border is increasing, as citizens of countries exempt from visa requirements who have obtained electronic visas for tourism purposes have been violating laws, including engaging in permanent work or activities other than the purpose of their visit, reported the Immigration Agency of Mongolia.