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IFC Issues Largest Mongolian Tugrik Bond for a Supranational www.gogo.mn
IFC, a member of the World Bank Group, has issued its first Mongolian tugrik (MNT) bond, the largest bond denominated in the Mongolian currency issued by a supranational to date.
The three-year bond, which raised 102.5 billion Mongolian tugriks—equivalent to approximately $30 million—creates additional liquidity in the Mongolian currency offshore market and supports IFC’s ongoing efforts to finance projects that drive economic growth and improve livelihoods.
Danish investment bank Global Evolution was the sole investor and Standard Chartered was the arranger. The bond will be listed on the Luxembourg Stock Exchange. TCX served as the swap provider.
"Liquid and well-developed capital markets are essential for the flow of financing from investors to borrowers," said Flora Chao, Global Head of Funding at IFC. "The issuance provides increased visibility of the Mongolian tugrik in the global markets and allows investors to gain exposure to this currency.”
"Global Evolution is optimistic about Mongolia’s impressive rebound, driven by a significant commodity boom in 2023, which has proven sustainable into 2024 and beyond,” said Christian Mejrup, deputy CIO, Emerging Market Sovereign Debt at Global Evolution. “We greatly appreciate how this boom, combined with high nominal growth and strong fiscal performance, has facilitated critical changes to the fiscal stability law. These changes are highly positive for debt consolidation and highlight the strength of Mongolia’s structural development."
“Standard Chartered are thrilled to have worked on this inaugural, landmark size offshore MNT issuance for IFC,” said Annemarie Ganatra, Head of Structured Macro Solutions at Standard Chartered. “With only hard currency (US dollar) bonds issued by the government of Mongolia, this MNT issuance provides unique AAA-rated access for local currency investors.”
“It was our pleasure to partner with IFC on the largest-ever offshore bond issuance denominated in MNT,” said Xander Goudriaan, Head of Trading at TCX. “The issuance allows us to support more local currency financing flows to the country at attractive levels for borrowers. This protects them from currency risk and stimulates domestic capital market development for MNT assets at the same time. The size of the bond also demonstrates investor appetite, which is key to developing the market further. We look forward to partnering on many more of IFC’s impactful issuances.”
Over the past decade, IFC has been actively supporting the development of Mongolia's financial markets, advising the Mongolian government on green bond regulations and investing in the country’s first green bond in 2023.
To date, IFC has issued bonds in 48 currencies. A number of these are emerging-market currencies such as in Rwandan franc, Uzbek som, and Zambian kwacha. IFC has often been among the first non-domestic issuers to borrow in these markets, helping to develop local capital markets and expand liquidity in local currencies.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
Published Date:2024-12-02
