DECISION MADE TO LIST THE FIRST LOCAL GOVERNMENT BOND ON THE CAPITAL MARKET

DECISION MADE TO LIST THE FIRST LOCAL GOVERNMENT BOND ON THE CAPITAL MARKET

By Resolution No. 43 of the Government dated August 13, 2025, the Governor of Umnugovi Province was granted the authority to issue and trade a MNT 500 billion bond on the domestic market to finance the construction of a 50 MW thermal power plant in Dalanzadgad.

In line with this, the decision to list the bond on the capital market was officially approved at a regular meeting of the Financial Regulatory Commission.

The bond is planned to be offered to the public on the domestic market in stages during 2026–2028:

MNT 150 billion in 2026

MNT 300 billion in 2027

MNT 50 billion in 2028

As the first local government bond, this issuance carries strategic importance for:

Implementing major infrastructure projects outlined in Mongolia’s development policies and plans

Securing a reliable regional energy supply

Supporting foundational infrastructure development

Creating new financing sources for local governments.

Ulaanbaatar Investment and Management Company has initiated research and analytical work on issuing local government bonds in cooperation with regional authorities, and is working to strengthen financing structures and expand investor participation.

Going forward, bonds will play a key role in implementing local development projects through market-based, off-budget financing mechanisms, mobilizing real investment, and expanding cooperation among professional institutions.

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