ULAN BATOR, Oct. 26 (Xinhua) -- The Mongolian government has issued a bond worth more than 800 million U.S. dollars in the international market, local media reported Thursday.
The annual interest rate of the "Gerege" bond is 5.6 percent and will mature in 5.5 years.
Credit Suisse, Deutsche Bank and JPMorgan have worked with the Mongolian Finance Ministry to issue the new bond.
The new bond will be spent for the repayment of the "Chinggis" bond (1.5 billion dollars) and "Dim Sum" bond (160 million dollars). The rest will be spent on adding foreign currency reserves.
Despite the warning of international rating agencies, such as Standard & Poor's, Moody's and Fitch, investment organizations in 2017 are interested in buying government bonds. When central banks begin to raise key rates, they have a negative impact on those countries that placed bonds in foreign currencies in the international market.
In 2016, the Mongolian government issued a five-year, 500 million-dollar "Mazaalai" bond with a rate of 10.8 percent. This is the highest interest rate since 2011.
At the beginning of November, 800 million dollars will be transferred to Mongolia. As a result, the Mongolian togrog will continue to strengthen against the U.S. dollar. Today, 1 U.S. dollar equals 2,458 Mongolian togrogs.