Ulaanbaatar City Initiates Capital City Bond Issuance for Strategic Development
Mongolia's capital, Ulaanbaatar city, recently applied to issue capital city bonds on August 25, 2023. The aim is to raise funds that can be used to address various economic and social challenges the city is facing. The plan involves offering bonds with a total value of up to 500 billion tugriks, which is roughly equivalent to around $144 million. This effort aligns with existing legal regulations.
The funds generated through these bonds will play a crucial role in financing strategic projects. These initiatives are aimed at improving the overall condition of the city. Key projects include urban decentralization, the reduction of congestion, expanding the road network, enhancing access to educational institutions, improving the quality of life for citizens, and creating better living conditions in general.
The process of issuing these bonds is being facilitated by BDSec JSC, a company with a 32-year history in providing investment consultation and underwriting services for significant projects. Their expertise adds credibility to the initiative.
The mayor of Ulaanbaatar stressed the importance of meticulous planning, embracing digital innovation, and strengthening the city's legal foundation to ensure effective development. The mayor also emphasized the potential of satellite cities and the importance of collaboration with the private sector.
Ulaanbaatar's development plan, which stretches until 2050, is currently under preparation. This plan envisions joint economic endeavors and aims to tackle the persistent issue of congestion in the city.
Ulaanbaatar's move to issue capital city bonds reflects its commitment to addressing pressing economic and social challenges. The bonds are expected to play a vital role in financing key projects that will enhance the city's infrastructure, education, and overall quality of life for its citizens.
The current metro area population of Ulaanbaatar in 2023 is 1,673,000, a 1.7% increase from 2022.
The government debt to GDP ratio in Mongolia is expected to reach 58 percent by the end of 2023.
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