DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report

Treasury Management Division 3/23/2017

News Highlights Mongolian Economic Main Indicators

Mongolia Indicators Unit 2016.02 2017.02 Year/chg %
New government bond replaces Eurobond (gogo.mn) Money Supply (M2) bln.MNT 10,011.00 12,260.70 22%
Due to the Development Bank of Mongolias USD 580 million Euro Inflation /Year to date/ % 1.20% 2.10% 75.0%
bond maturing on March 21, the Ministry of Finance announced that Equilibrated overall balance of budget bln.MNT (258.50) (211.70) -18%
Development Bank-owned Eurobond is to be replaced by a new bond Trade balance mln.USD 261.20 334.20 27.9%
issued by the Government of Mongolia in February, 2017. Credit Suisse Export /accumulated/ mln.USD 613.30 825.30 35%
and J.P.Morgan will be acting as the bonds underwriters.In March of Import /accumulated/ mln.USD 352.10 491.00 39%
2012, the Government of Mongolia launched USD 580 million worth of
bond, Eurobond to be matured on March 21, 2017 with an annual Policy rates
interest rate of 5.75 percent. In order to build railroads and fifth power Central Banks' interest rates Latest % Previous % Updated date
station, 36 percent of Eurobond was traded to European investors, 32 Policy rate of BOM 14.00 15.00 12/19/2016
percent to American investors and 32 percent to Asian investors. PBC base interest rate (China) 4.35 4.60 10/24/2015
At the beginning of 2017, question rose among the investors whether the FED - Federal Funds Rate 1.00 0.75 3/14/2017
government can repay the debt. Owing to the staff-level agreement with ECB - main refinancing rate 0.00 0.05 3/16/2016
the International Monetary Fund on three-year Extended Fund Facility
BOE official bank rate (England) 0.25 0.50 8/4/2016
program, the Government of Mongolia earned the investors trust in the
newly offered bond. In addition, 82.07 percent of the investors have
agreed to the exchange offer. Bank of Mongolia - Interest corridor
Prime Minister meets with the states administrative leadership Indicators Latest % Previous % Updated date
(theubpost.mn) Overnight repo 17.00 18.00 12/19/2016
On Monday, Prime Minister J.Erdenebat met with heads of state Overnight deposit 13.00 14.00 12/19/2016
administrative organizations and state-owned enterprises to discuss Repo 16.00 17.00 12/19/2016
strengthening discipline. The Prime Minister pointed out that the new
Cabinet has been working to bring about a consolidated state budget. He Money market interest rates
told the state administrators, We have uncovered a number of cases Indicators Rates % Daily chg % Yearly chg %
involving illegal budget spending by evaluating projects being Libor USD 2M 1.0200 0.00 24.48
implemented through concession agreements and bond financing. He Libor USD 3M 1.1562 0.00 15.87
noted that regaining the trust of foreign investors is a positive result of Libor USD 6M 1.4338 -0.08 8.81
the work the new Cabinet has carried out over the past several months.
Libor EUR 2M -0.3686 0.00 -4.24
He added that the current economic challenges arise from unregulated
Libor EUR 3M -0.3557 -0.40 -5.73
spending, so avoiding the repetition of past mistakes is important. The
PM stressed that state officials should always remember that the
Official exchange rates - BOM Cross rates
government is not an institution that should make an officials business
successful and help them make more money. He said that if someone Official rates 3/23/17 8:46 Cross rates 3/23/17 8:46
views the government in this way, that person should resign immediately. USD/MNT 2459.38 EUR/USD 1.0788
EUR/MNT 2656.50 GBP/USD 1.2473
Mongolian Mining Corp. Filed for Chapter 15 Protection in N.Y. GBP/MNT 3066.97 USD/CHF 0.9924
(bloomberg terminal) CNY/MNT 357.18 USD/CNY 6.8819
Co. said it has consolidated assets consisting of $537.1m of property, JPY/MNT 22.06 USD/JPY 111.33
plant and equipment, $510.2m of intangible assets, $30.6m of inventory,
$106.7m of trade and receivables, and $3m of cash as of June 30, 2016. Mongolian Bonds information
Mongolian Mining is seeking recognition of the proceeding in the Bonds Currency Yield % Last price Daily chg%
Cayman Islands as a foreign main proceeding Mongol 2018 USD 4.15 99.97 0.042%
USA Mongol 2021 USD 6.46 115.43 0.227%
Dollar hits four-month low vs yen on growth pace rethink Mongol 2022 USD 6.32 94.25 0.042%
U.S. shares recover after downturn; gold rallies Mongol 2024-Khuraldai bond USD 7.03 109.33 0.191%
Erdogan warns Europeans 'will not walk safely' if attitude persists, as row carries on Mongol 2018-Dim sum bond CNY 8.50 98.80 0.417%
Europe DBM-Samurai 2023 JPY 0.98 103.40 -0.076%
Germany says its current account surplus will shrink in coming years TDBM-2020 bond USD 6.84 107.45 -0.065%
German Finance Ministry says latest German data suggests continuation of MMC bond USD 9,920.83 65.22 0.485%
economic upturn
North Asia Commodity Trading Prices
North Korea has no fear of U.S. sanctions move, will pursue nuclear arms - envoy Commoditues Latest price Daily chg% Yearly chg%
S&P: Development Bank of Mongolia Clears Bond Repayment Hurdle; No Rating Crude oil /barrel/ $48.22 0.37 -10.24
Impact Gold Spot /ounce/ $1,246.39 -0.20 8.62
Commodity market Copper /LME/ $5,808.00 0.55 4.92
Overall, major banks commodities revenue sank to an 11-year low in 2016 Iron ore (Beijing) 590.00 0.00 31.11
Oil Price Forecasts Falling on Shale Revival, OPEC Uncertainty Coal (Tianjin) 1,520.00 0.00 -13.64

Sources: bloomberg terminal, 1212.mn, bloombergtv.mn,

1 montsame.mn, news.mn, gogo.mn, ikon.mn
DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report
Treasury Management Division 3/23/2017

Previous day's economic calendars Today's economic calendars

Event Period Forecast Actual Previous Event Time Period Estimated Previous

JN All Industry Activity Index MoM Jan 0.00% 0.10% -0.30% EC ECB Targeted LTRO Total Amount
06:20 23-Mar EU110.00b EU62.16b
JN Nationwide Dept Sales YoY Feb -- -1.70% -1.20% US Initial Jobless Claims 08:30 18-Mar 240k 241k
JN Tokyo Dept Store Sales YoY Feb -- -3.10% -1.50% US Continuing Claims 08:30 11-Mar 2040k 2030k
EC Current Account NSA Jan -- 2.5b 47.0b US Bloomberg Consumer Comfort 09:45 19-Mar -- 51.00
EC ECB Current Account SA Jan -- 24.1b 31.0b US New Home Sales 10:00 Feb 564k 555k
US MBA Mortgage Applications 17-Mar -- -2.70% 3.10% EC Consumer Confidence 11:00 Mar A (5.90) (6.20)
US Existing Home Sales Feb 5.55m 5.48m 5.69m

Related information of Mongolian Bonds issued on international market (bloomberg)

Amount Price YTM Remaining
Issuer Coupon Issued Date Maturity Date
(mln USD) Bid Ask Bid Ask years (year)
Mongol 2018 500 4.125% 99.73 100.23 4.48 3.81 0.8 5-Jan-13 5-Jan-18
Mongol 2021 500 10.875% 114.97 115.87 6.58 6.35 4.0 6-Apr-16 6-Apr-21
Mongol 2022 1,000 5.125% 93.89 94.83 6.42 6.22 5.7 5-Dec-12 5-Dec-22
Mongol 2024-Khuraldai bond 580 5.750% 109.01 109.66 7.09 6.97 7.0 21-Mar-17 9-Mar-24
Mongol 2018 - Dim sum bond 1 billion CNY 7.500% 98.44 99.16 8.81 8.19 1.3 30-Jun-15 30-Jun-18
DBM - Samurai 2023 billion JPY 1.520% 103.23 103.56 1.01 0.96 6.8 16-Dec-13 25-Dec-23
TDBM - 2020 bond 500 9.375% 106.63 107.45 6.98 6.70 3.2 19-May-15 19-May-20
MMC 2017 600 8.875% 63.71 65.22 10251.69 9597.63 0.0 29-Mar-12 29-Mar-17

Last Prices of Mongolian Bonds issued on international market (Last 3 months)

Mongol 2018, Mongol 2022. Mongol 2024 - Last price DBM Samurai - Mid Line & Mid Yield to Maturity

Last Price (JPY) Mid YTM (%)

Mongol 2018 Mongol 2022 Mongol 2024 (Khuraldai bond)
105.0 1.2%
103
99.986 118
100 104.5 1.1%
0.983%
94.203 115
97
104.0 1.0%
94 112
/Year to date/ /Year to date/
91 109 103.5 0.9%
109.410 106
88
103.0 0.8%
103
103.396
85

82 100 102.5 0.7%

Sources: bloomberg terminal, 1212.mn, bloombergtv.mn,

2 montsame.mn, news.mn, gogo.mn, ikon.mn
DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report
Treasury Management Division 3/23/2017

Bond Holders' Information

Bond holders of Mongol 2022

Names Position % of position Latest change Fiing date Country
BLACKROCK 110,412 11.04% 6626.00 3/21/2017 United States
ALLIANCE BERNSTEIN 35,283 3.53% 1116.00 1/31/2017 United States
PRUDENTIAL FINANCIAL INC 30,120 3.01% 1105.00 1/31/2017 United States
GOLDMAN SACHS GROUP INC 28,474 2.85% 1715.00 1/31/2017 United States
FMR LLC 25,620 2.56% 200.00 1/31/2017 United States
GRANTHAM MAYO VAN OTTERLOO & CO 18,600 1.86% 0.00 5/31/2016 United States
FRANKLIN RESOURCES 18,500 1.85% (3000.00) 12/31/2016 United States
SCHRODERS PLC 17,800 1.78% (5310.00) 12/31/2016 United Kingdom
DANSKE BANK A/S 15,222 1.52% 0.00 2/28/2017 Denmark
UBS 10,791 1.08% 1790.00 2/28/2017 Switzerland
PRUDENTIAL PLC 10,500 1.05% 0.00 11/30/2016 United Kingdom
T ROWE PRICE GROUP INC 10,496 1.05% 0.00 3/31/2015 United States
LAZARD LTD 9,400 0.94% 3105.00 1/31/2017 Bermuda

Bond holders of Mongol 2018

Names Position % of position Latest change Fiing date Country
FMR LLC 35,900 7.18% 0.00 1/31/2017 United States
UBS 18,240 3.65% 7,000.00 11/30/2016 Switzerland
TCW GROUP INC 15,816 3.16% 0.00 2/28/2017 United States
PRUDENTIAL FINANCIAL INC 13,700 2.74% (2,000.00) 2/28/2017 United States
EATON VANCE CORP 9,668 1.93% 0.00 5/31/2016 United States
T ROWE PRICE GROUP INC 7,543 1.51% 0.00 3/31/2015 United States
LAZARD LTD 6,656 1.33% 6,616.00 12/31/2016 Bermuda
NORDEA BANK AB 6,095 1.22% (650.00) 1/31/2017 Sweden
SCHRODERS PLC 5,895 1.18% (435.00) 6/30/2016 United Kingdom
BLACKROCK 4,695 0.94% 0.00 11/30/2016 United States
AXA 4,400 0.88% 4,400.00 6/30/2016 France
PRUDENTIAL PLC 4,245 0.85% 500.00 11/30/2016 United Kingdom
HSBC 4,200 0.84% 0.00 11/30/2016 United Kingdom
SCHRODER INV MGMT TAIWAN LTD 3,785 0.76% 0.00 12/30/2016 Taiwan

Bond holders of Mongol 2024

Names Position % of position Latest change Fiing date Country
UBS 300 0.05% 0.00 3/17/2017 Switzerland

This presentation has been prepared solely for informational purposes only and its not to be construed as a solicitation or any offer to buy or sell securities, commodities,
or related financial instruments.

Contact us:ALTMD-TMD, Tel:+976-7585 7070/ext: 310/

Sources: bloomberg terminal, 1212.mn, bloombergtv.mn,

3 montsame.mn, news.mn, gogo.mn, ikon.mn