Mongolia $600 million 8.75% sovereign bond issue and exchange offer

Overview:

• The Government of Mongolia has issued a $600 million 8.75% sovereign bond due 2024.
• The deal included an exchange offer for the $580 million 5.75% notes due 2017 issued by Development Bank of Mongolia (DBM), as well as a new money component.
• Approximately $476 million in new sovereign government bonds were exchanged for outstanding DBM bonds, while an additional $124 million in new government bonds were issued for cash.
• Credit Suisse and JPMorgan acted as joint lead managers and joint bookrunners for the deal, and SC Lowy acted as financial adviser for the Government of Mongolia.
• The transaction formed part of larger discussions with the International Monetary Fund (IMF) related to its staff-level agreement to provide a three-year extended fund facility to Mongolia in response to the country's challenging economic conditions.

Adam Majeed - Regional editor