Bulletin: Trade And Development Bank Of Mongolia Has Sufficient Liquidity For Bond Repayment

HONG KONG (S&P Global Ratings) May 12, 2020--S&P Global Ratings today said that Trade and Development Bank of Mongolia LLC (TDB; B/Stable/B) has enough funds to repay its US$500 million bond due on May 19, 2020. We expect the Mongolia-based bank to repay its obligations with its own liquidity--without relying on external financing or the government guarantee that is attached to the bond. We base our expectation on the assumption that TDB has no unexpected, large withdrawals of customer deposits in the interim. TDB's funding and liquidity profiles will not significantly deteriorate after the bond repayment, given that the bank has been shoring up liquidity. Its liquidity ratio will also benefit from the government bond portfolio that the bank maintains

...May 11, 2020 HONG KONG (S&P Global Ratings) May 12, 2020--S&P Global Ratings today said that Trade and Development Bank of Mongolia LLC (TDB; B/Stable/B) has enough funds to repay its US$500 million bond due on May 19, 2020. We expect the Mongolia-based bank to repay its obligations with its own liquidity--without relying on external financing or the government guarantee that is attached to the bond. We base our expectation on the assumption that TDB has no unexpected, large withdrawals of customer deposits in the interim. TDB's funding and liquidity profiles will not significantly deteriorate after the bond repayment, given that the bank has been shoring up liquidity. Its liquidity ratio will also benefit from the government bond portfolio that the bank maintains in relation to the US$500 million bond. This bond portfolio is currently excluded from TDB's accessible liquid assets but will become eligible for inclusion after the repayment. We also note that TDB had established a long-term...

Bulletin