Bulletin: Development Bank of Mongolia Will Likely Manage Refinancing Risk On Its December Bonds

SINGAPORE (S&P Global Ratings) Oct. 24, 2023--Development Bank of Mongolia LLC (DBM) will likely manage refinancing risk on the upcoming samurai bonds worth ¥30 billion (about US$ 200 million based on today's exchange rate) due on Dec. 25, 2023. We believe it's unlikely that DBM (B/Stable/B) would fail to repay the samurai bonds considering that the obligations are guaranteed by both Mongolia (B/Stable/B) and Japan Bank for International Cooperation (JBIC; A+/Stable/A-1). In our view, the Mongolian government will likely step in to support DBM when the bank's own resources are not sufficient to redeem the bonds. We believe the government has the capacity to support DBM in light of the country's continuing economic recovery, benefitting from the surge in exports

...October 24, 2023 SINGAPORE (S&P Global Ratings) Oct. 24, 2023--Development Bank of Mongolia LLC (DBM) will likely manage refinancing risk on the upcoming samurai bonds worth Ñ30 billion (about US$ 200 million based on today's exchange rate) due on Dec. 25, 2023. We believe it's unlikely that DBM (B/Stable/B) would fail to repay the samurai bonds considering that the obligations are guaranteed by both Mongolia (B/Stable/B) and Japan Bank for International Cooperation (JBIC; A+/Stable/A-1). In our view, the Mongolian government will likely step in to support DBM when the bank's own resources are not sufficient to redeem the bonds. We believe the government has the capacity to support DBM in light of the country's continuing economic recovery, benefitting from the surge in exports after the normalizing border access with China since late last year. DBM will continue seeking additional funding to cope with a potential liquidity shortfall and exerting efforts for asset recoveries. On Oct. 23,...

Bulletin