Erchim Energy sells 500 million MNT bonds

Ulaanbaatar /MONTSAME/ Mongolia’s first insured bond - “Erchim” (intensity or energy in Mongolian) was sold out between August 12 and 21, with Golomt Bank's underwriting. The bond was issued with face value of 10,000 MNT, annual coupon of 18.5 percent and with six months maturity. Demand for the bond reached MNT 2.4 billion, exceeding the supply by 4.7 times. After the gainful issuance at the first market, the bond is to be transferred to the secondary market. The Financial Regulatory Committee listed at the beginning of this month 50 thousand of “Erchim Bond” worth MNT 500 million. The bond-issuing “Erchim Engineering” LLC was established in 1999 to supply maintenance services for factory equipment, and is now operating in energy, mining and civil construction sectors. According to the company authorities, the bond money will be dedicated to fund the project that the company has won over a tender.