"CHINGIS" BONDS ANNOUNCED AS THE BEST

Ulaanbaatar /MONTSAME/ The Finance Asia and the Asiamoney magazines have announced the trade of Chingis governmental bonds as the best sovereign bonds for 2012, and the certificates "Best Sovereign Bond and the Best Mongolia Deal" have been awarded. The Finance Asia magazine says:"There are not a lot of sovereign dollar bonds in Asia, and Mongolia's USD 1.5 billion dual-tranche bonds offered investors the chance to diversify. It was a debut issue for the country and the fact that it managed to raise USD 1.5 billion in one fell swoop was an impressive outcome. Also impressive was the fact that its 10-year bonds priced at a yield of 5.125%, just slightly back of Sri Lanka, which has a $60 billion economy and is a far more seasoned borrower, having issued its debut bond back in 2007. "It also grabbed attention as Mongolia attracted USD 15 billion in orders from international investors--twice the size of its GDP. While this may be an indication of just how frothy bond markets are, the exuberant demand helped a frontier credit like Mongolia achieve tight pricing for a chunky size. Despite the tight pricing, immediately after the bonds priced, they traded up in the secondary market, an indication that they were held in the hands of buy and hold investors. The deal saw strong participation from fund managers, which were allocated 82% of the five-year tranche and 85% of the 10-year tranche. "While Mongolia's bond prices were volatile the week after it priced amid reports that the Mongolian People's Revolutionary Party might pull out of the coalition government, from the standpoint of the sovereign, the timing was right and the deal was flawlessly executed. The sovereign also achieved cost savings by accessing capital markets directly as opposed to through a guarantee structure," the magazine says. On December 13, the Best Sovereign Bond award-2012 of the Asiamoney magazine went to the Chingis bonds that were sold by the government of Mongolia with USD 1.5 billion in debt in its first government bond offering. B.Khuder