Ulaanbaatar
Second phase trading of ‘ETT Bond’ to be opened next week
Economy
Ulaanbaatar /MONTSAME/. In April this year, Erdenes
Tavantolgoi JSC received a permission from the Financial Regulatory Committee
to issue the dual currency ‘ETT Bond’ with a total value of up to MNT 2 trillion
with a purpose to finance the implementation of major projects.
The ETT bond was intended to be offered to the public in
three phases, and the first phase was successfully organized between March 30
and April 09, 2021.
In the first phase of the ‘ETT Bond’ primary market trading
order, a total of MNT 677.7 billion of orders were submitted by stakeholders
and fully met planned target. 970 business entities and individuals (in
repeated counting) took part in the trading and placed 2,755,639 orders, which raised
MNT 347.7 billion, in addition to MNT 330 billion raised under the bank
refinancing agreements.
The second phase will be organized on August 16-25, with an
intent to offer bonds worth MNT 285 billion and USD100 million. The issuance of
this bond in US dollars prevents from the risk of depreciation and has
relatively high interest rates compared to other US dollar financial products.
With the money raised in the domestic capital market, it is
expected to fund the major infrastructure projects of the country, such as Tavantolgoi
Thermal Power Plant, Railway, Coal Processing Plant and Water Supply Plant. Thanks
to the above constructions, the company's efficiency will increase and it is expected
to have a net profit of MNT 11.5 trillion until 2025.
