Long-Term Mongolian Government Bond Will Be Issued

Government bonds totaling of 76.0 billion tugriks were successfully traded at Mongolian Stock Exchange on June 8th 2011 and July 6th 2011, whose funds will be used for financing long term housing loan program for 4,000 state employees.


The next scheduled trading of government bonds will take place at the Mongolian Stock Exchange on August 3rd 2011 and the bond specifications are given below.

Volume /billion.₮/    Quantity    Face value /₮/    Maturity /year/    Interest % /annual/

           7.01                70,100             100,000                        1                       7.50

           6.0                  60,000             100,000                        2                       7.75

           2.0                  20,000             100,000                        3                       8.00

           2.0                  20,000             100,000                        5                       8.50

        TOTAL                                      17.01 billion tugriks

In accordance with the decree titled, “Approval of the issuance of Government Bond” passed on May 27th, 2011 by State Great Khural, the government was assigned to issue bonds totaling 300 billion tugriks, out of which 100.0 billion tugriks for cashmere sector, 50.0 billion tugriks for wool sector, and the remaining 150.0 billion tugriks to be used for promoting small-to-medium enterprise.

According to implementation of this decree, the government of Mongolia approved with decree no.:208 of the Government on July 6th, 2011. According to the above, government securities (bonds) shall be traded following consecutive steps between August and November, 2011 through MSE and the trading schedule will be announced to the public before the end of July by the Ministry of Finance.