By Daniel Stanton and Spencer Anderson
SINGAPORE/HONG KONG, Feb 24 (IFR) - The Government of Mongolia's new US dollar Bonds, to be issued as part of an Exchange Offer for Development Bank of Mongolia's state-guaranteed March 2017 bonds, will have a seven-year tenor and minimum yield of 8.75 percent.
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The exchange offer ends on March 1 and the new notes will be priced on March 2. Investor meetings run until February 28.
Credit Suisse and JP Morgan are managing the transaction.
There had been concerns that Mongolia might struggle to meet the $580 million DBM bond redemption on March 21.
However, over the weekend the International Monetary Fund said it had reached an agreement on funding for Mongolia. The agreement is subject to the confirmation of financing assurances and approval by the IMF executive board. That means funding would not be received before the DBM bonds mature, raising the need for the exchange offer. (Reporting by Daniel Stanton and Spencer Anderson; Editing by Vincent Baby)
Source:Reuters
