The Trade and Development Bank of Mongolia (TDB) has set another milestone by fully redeeming its $500 million bond using its own resources. As the first and only commercial bank in Mongolia to have successfully issued five international bonds totaling $1.14 billion since 2007, TDB continues to uphold its reputation as a leading financial institution.
The $500 million bond, issued in 2015 during a period of economic challenges for Mongolia, played a pivotal role in stabilizing the country’s foreign currency reserves and exchange rates. By fulfilling its obligations with full accountability, TDB has once again strengthened its standing on the global financial stage while reaffirming its reliability to clients and investors alike.
A Legacy of Excellence in Bond Issuance
TDB has successfully issued and repaid the following bonds over the years:
- 2007: $75 million bond
- 2010: $150 million bond
- 2012: $300 million bond
- 2014: RMB 700 million bond
- 2015: $500 million bond
The 2015 bond was issued during a time of significant economic uncertainty, marked by declining commodity prices, reduced economic growth, and shrinking foreign reserves. Despite these challenges, the bond saw overwhelming demand, with orders totaling $2.3 billion from 231 investors. This demonstrated strong investor confidence in both TDB and Mongolia during a critical period.
Proceeds from the 2015 bond were used to enhance Mongolia’s foreign currency reserves and stabilize the exchange rate through a $500 million swap agreement with the Bank of Mongolia. Additionally, the bond proceeds funded strategic investments in key sectors, contributing to economic recovery and growth.
In a time when the COVID-19 pandemic has disrupted global trade and economies, TDB’s repayment of the $500 million bond has been a significant achievement. It has bolstered Mongolia’s reputation in international financial markets and renewed investor confidence in the country.
Despite fulfilling this obligation, TDB maintains a high liquidity position, exceeding industry averages.
As TDB celebrates its 30th anniversary, the bank extends its heartfelt gratitude to its clients, business partners, international collaborators, and dedicated employees who have supported its journey toward progress and innovation.
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Trade and Development Bank