MANILA, PHILIPPINES (9 August 2023) — The Asian Development Bank (ADB) has issued its third bond issue denominated in Mongolian togrog (MNT). The MNT13.7 billion (about $4 million) 3-year gender bond pays a fixed coupon of 11.25% semi-annually.
The proceeds of the bond are deployed to finance ADB’s Invescore Micro, Small and Medium-Sized Enterprises Financing Project, which aims to improve access to finance, including through women-led micro, small, and medium-sized enterprises and support the diversification of the Mongolian economy.
The bond is structured with a sinking fund to mirror the amortizing nature of the loan that it funds. Standard Chartered Bank acted as arranger of the gender bond issue, which was placed with a single European investor.
“With a second MNT bond issue in just 2 weeks, ADB’s traction with local currency bond investors has proven key,” said ADB Treasurer Pierre Van Peteghem. “ADB’s strategy is to mainstream local currency finance across all our borrowing member currencies, a target on which we are delivering.”
ADB issued a MNT35 billion health bond on 20 July 2023.
“We are pleased to partner with ADB and support their local currency operation in Mongolia that will benefit micro, small, and medium-sized businesses with female leadership. The Record EM Sustainable Finance Fund remains committed to providing sustainable currency solutions with a positive impact on the development of local communities, and we congratulate ADB on their growing local currency programs that help promote sustainable job creation and inclusive income distribution,“ said Record Currency Management Chief Executive Officer Jan Hendrik Witte.
In 2023, ADB has so far raised local currency funding through the issuance of bonds in Azerbaijan manat, Chinese renminbi, Georgian lari, Kazakhstan tenge, and MNT. ADB also relies on derivative instruments to raise local currency funding, particularly in Indian rupees, Philippine pesos, and Thai baht.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.