Bulletin: Exchange Offer, Government's Capital Injection Support Bond Repayment Of Development Bank of Mongolia; No Rating Impact

HONG KONG (S&P Global Ratings) Feb. 21, 2017--S&P Global Ratings said today that the ratings on Development Bank of Mongolia (DBM; B-/Stable/B) are unaffected by the Mongolian government's exchange offer for the bank's outstanding sovereign guaranteed notes of US$580 million due March 21, 2017. We view the offer as additional support for DBM to meet the March bond repayment. Under the government's proposal, investors have the option to exchange the maturing notes with new sovereign bonds. This announcement follows a likely extension of an external funding facility for Mongolia from the International Monetary Fund and other international partners, including Asian Development Bank and World Bank. DBM has been accumulating cash and equivalents for the repayment of its notes, largely from

...HONG KONG (S&P Global Ratings) Feb. 21, 2017--S&P Global Ratings said today that the ratings on Development Bank of Mongolia (DBM; B-/Stable/B) are unaffected by the Mongolian government's exchange offer for the bank's outstanding sovereign guaranteed notes of US$580 million due March 21, 2017. We view the offer as additional support for DBM to meet the March bond repayment. Under the government's proposal, investors have the option to exchange the maturing notes with new sovereign bonds. This announcement follows a likely extension of an external funding facility for Mongolia from the International Monetary Fund and other international partners, including Asian Development Bank and World Bank. DBM has been accumulating cash and equivalents for the repayment of its notes, largely from the government's Mongolian tugrik-denominated capital injection in late December 2016. Coinciding with these developments, Mongolia has revised a DBM-related law to reposition the bank to focus on commercially...

Bulletin