GLOBAL CAPITAL MARKET RECOVERY IS OPENING NEW FINANCING OPPORTUNITIES FOR MONGOLIA

A mid rising geopolitical risks in the Middle East, international investors are increasingly shifting toward relatively stable and lower risk regions, accelerating capital diversification into Asia. This trend is creating favorable conditions for Mongolia to issue new sovereign bonds and refinance existing external debt.

The successful issuance of a USD 2.5 billion Additional Tier 1 (AT1) bond by HSBC in the Hong Kong market signals a clear revival of activity in global capital markets.

Bond structure:
5 year tranche — USD 1.25 billion at 6.75%
10 year tranche — USD 1.25 billion at 7.0%
Jointly arranged by 33 international banks, including Citigroup, Morgan Stanley, and Goldman Sachs

Following the issuance, HSBC’s share price increased, indicating renewed investor appetite for higher yield assets.

UBIM is currently assessing opportunities to refinance municipal bonds and is preparing to act when favorable market conditions emerge.

Increased regional capital inflows present tangible advantages:
Lower cost of financing
Access to more competitive funding terms
Acceleration of strategic urban development projects

UBIM is actively leveraging global market trends to structure financing solutions for Ulaanbaatar’s development projects and to support sustainable economic growth.