The International Finance Corporation (IFC) issues its first bond in Mongolian MNT, marking it as the largest bond in MNT issued by a supranational entity. The 3-year bond raises ₮102.5 billion, boosting liquidity in Mongolia’s offshore MNT market and supporting IFC’s efforts to foster economic growth and improve livelihoods.

• Key Participants and Arrangements: Global Evolution, a Danish investment bank, acts as the sole investor, and Standard Chartered arranges the bond. It lists on the Luxembourg Stock Exchange, with TCX providing the swap.
• Over the past decade, Over the past decade, IFC has supported the growth of Mongolia’s financial markets through advisory roles on green bond regulations and investment in green bonds, including Mongolia’s first-ever green bond issued by Khan Bank (KHAN ) in 2023. With bonds issued in 48 currencies, IFC often leads in emerging markets, enhancing local market development and liquidity.

Overview of Bonds Issued in Mongolia

This year, Mongolia issues 6 bonds, with Ulaanbaatar City’s UB bond leading at ₮500 billion. 3 of these bonds are in USD, and the Shunkhlai Bond, set to debut on December 3, aims to raise ₮80 billion. Together, these bonds raise ₮835 billion, with the addition of Shunkhlai’s bond bringing the total to ₮915 billion.

The State of Mongolia’s Bond Market

Mongolia's bond market shows steady growth and resilience despite economic challenges. Government and corporate bonds play a vital role in funding infrastructure projects and driving economic progress. Both local and international investors actively participate, motivated by Mongolia's mineral wealth and strategic development plans. Green bonds gain significant traction this year, reflecting the nation's commitment to sustainable finance. Out of the six bonds issued in 2024, 3 are green bonds, highlighting the shift towards environmentally conscious investment options.

In conclusion, the IFC’s issuance of its first Mongolian MNT bond marks a significant development for Mongolia’s financial market, underscoring its resilience and growth. This initiative not only enhances market liquidity but also supports the country’s economic development goals. The issuance reflects a broader trend in Mongolia’s bond market, which includes strong participation from both local and international investors and an increasing focus on sustainable finance, as seen with the popularity of green bonds. With IFC’s continued efforts to foster local capital market growth, the market remains on a positive trajectory, providing a stable foundation for future economic expansion.