Mongolia

Indonesia’s move to pre-fund its 2017 financing requirements with a bond last week surprised the market. Views are mixed on whether it made the right decision but DCM bankers in the region hope other sovereigns will also look to make an early start on funding plans.

The Mongolian sovereign has been dealt a blow after Moody’s downgraded its rating last Friday, followed by Fitch on Tuesday.

Moody’s downgraded Mongolia’s long term issuer and senior unsecured rating from B3 to Caa1 last Friday, reflecting the agency’s lack of faith in the country’s ability to control its dire budget deficit.

ING Bank has made changes to its businesses in Mongolia and South Korea, appointing a new chief representative for the former and bolstering its presence in the latter.

ING Bank has named Erik Versavel as the new chief representative for Mongolia from September 15 as the former country head takes on a new role at the Dutch lender.

S&P Global Ratings lowered its rating on Mongolia to B- from B, citing the country’s weaker fiscal performance and growth prospects. This is a further blow to the country, which was already downgraded by one notch in November 2015.

Mongolia has received commitments from Chinese lenders for its debut syndicated loan of up to $500m.

The Government of Mongolia finally dipped its toes into the international bond market, raising $500m from a 144A five year trade this week. The sovereign managed to assuage investors concerned about the twin headwinds of volatile commodities prices and slowdown in China, but had to pay up in the process. Narae Kim reports.

The Government of Mongolia raised $500m from the international bond market on Tuesday, opting to pay up to compensate investors for its vulnerability to external shocks.

The Government of Mongolia is out with a 144A/Reg S bond, more than two months after holding meetings with potential investors. Delayed by a series of negative macro factors, the sovereign is offering an attractive yield when compared with its outstanding notes.

Mongolian Mining Corp (MMC) has failed to pay banks instalments and interest related to loans it raised in 2014, according to a filing with the Hong Kong Stock Exchange.

Mongolia is seeking up to $500m from its syndicated loan debut and has already received $250m of the funds.