A $600 million Mongolian bond deal to allow for greater government spending on sustainability objectives has attracted 'strong interest' from international investors.
As a first-of-its kind sustainable sovereign transaction in Asia, Mongolia’s issuance extended the maturity profile of the government’s debt and reduced debt servicing costs.
These cost savings should enable the Mongolian government to increase spending in accordance with Mongolia’s sustainability objectives.
These objectives include the development of hydropower projects and schools, as well as the continuing development of affordable housing to reduce substandard living conditions in the ger districts, where winter heating requires burning wood or low-quality coal that exacerbates urban pollution.
The sovereign issuance is a rare occurrence in the Asia-Pacific, according to law firm Mayer Brown.
"We are pleased to have advised our banking clients on this successful bond offering and honoured to have been involved in Mongolia’s landmark transaction," Jason Elder, a partner and leader of Mayer Brown’s global Corporate & Securities practice group, said. "This benchmark issuance and liability management transaction brings significant benefits to Mongolia."
Do you want to help the world audience understand the dizzying political changes occurring in Mongolia today? Can you look at local news stories from a global perspective? Join the conversation by contributing to Mongolia Weekly - the first-ever weekly newsletter in English offering commentaries and insights into Mongolian politics, elections, policy & regulatory changes, and foreign policy trends.
Comentários