Development Bank of Mongolia announced that it successfully issued a USD 500 million bond offering on October 17 that was oversubscribed eight times over.

After a five-year absence on the international debt capital markets, DBM transacted a USD 500 million bond offering, receiving orders for USD 4.1 billion. This represented an oversubscription eight times over, which was ever more noteworthy as the bond was the first offering by DBM without a government guarantee. The bank said that the successful offering is important in setting a price reference for other Mongolian borrowers.

The five-year bond has an interest rate of 7.25 percent and will be used to refinance existing short-dated and floating rate debt with the objective to manage assets and liability mismatches by extending duration, eliminating interest rate risk and reducing cost on a duration-adjusted basis.

Source: PressReader.com