The "Mongolian Stock Exchange" held an opening bell ceremony for the "Ulaanbaatar Bond" primary market debt instrument trading in the Honor Hall of the Financial Regulatory Commission.

The ceremony was attended by the First Deputy Governor of the Capital City for Economic Development and Infrastructure Affairs, Mr P. Sainzorig; Chairman of the Financial Regulatory Commission, Mr D. Bayarsaikhan; Deputy Executive Director of the Mongolian Stock Exchange, Mr J. Tsogtbayar; Director of Business Development, Mr T. Khash-Erdene, Chairman of the Board of Directors of BDSec JSC, Mr D. Dayanbilguun,  and other officials.

In his opening statement, the Deputy Executive Director, Mr. J. Tsogtbayar,  stated:

"Under Resolution No. 89  made by the  Citizens' Representative Conference of the Capital City in 2024, the process of raising a total of 500 billion MNT through the "Ulaanbaatar Bond" to finance projects and activities included in the city's budget has begun. Following the approval of the Legal Status of the Capital City Law by the Parliament in 2022 and the support from the Government and Ministry of Finance for the issuance of securities by the capital city in July 2023, the Financial Regulatory Commission granted permission to issue the Ulaanbaatar Bond on June 5, 2024. Today, we are pleased to announce the opening of the primary market trading for the Ulaanbaatar Bond, offering 500 billion MNT worth of securities to the public."

For the initial phase of the "Ulaanbaatar Bond," bonds with a nominal value of MNT 100,000 each, a maturity period of up to 36 months, and semi-annual interest payments will be offered on the domestic market starting from June 20, 2024, to June 26, 2024, between 10:00 AM and 5:00 PM. We invite all esteemed investors to actively participate in the trading to support the capital city's investments and development, and with this, declare the official commencement of the Ulaanbaatar Bond primary market trading with the ringing of the bell!"

Mr. D. Bayarsaikhan, Chairman of the Financial Regulatory Commission, stated: "In line with the long-term development policy documents such as "Vision 2050" and the "Strategy to Reduce Loan Interest Rates," adopted by the Parliament, the Financial Regulatory Commission has been implementing policy measures to develop a globally competitive capital market, increase the number of new products and services, improve securities trading liquidity, and enhance investor confidence. Capital City's bond issuance is a historic event for the capital market, which was achieved through these sustained efforts. Internationally, cities and regions issue bonds to finance major infrastructure projects and secure stable financial sources. The issuance of the capital city's bond not only adds new products to the capital market but also establishes a benchmark yield rate, aligns bond valuation with international standards, and fosters the development of the domestic bond market, increasing the participation of professional investors, including open and closed-end investment funds."

The First Deputy Governor of the Capital City for Economic Development and Infrastructure Affairs, Mr P.Sainzorig, stated:

"It is impossible to address the numerous challenges facing Ulaanbaatar city solely with budgetary funds. Therefore, we will resolve these issues through additional financial resources. Ulaanbaatar city plans to raise up to 500 billion MNT through bond trading to finance essential projects such as road infrastructure, new sewage treatment plant facilities, and improving power supply and flood control infrastructure."

For instance, Ulaanbaatar city currently has 1,450 km of paved roads. The increasing population and vehicles in recent years have made the current road network inadequate. To enhance the road network's capacity, the comprehensive construction of 73.1 km of roads and drainage systems in 27 locations, including primary and secondary roads and residential areas, is planned.

Additionally, the funds will be used to construct Ulaanbaatar City's new central sewage treatment plant. To fully operationalize the central sewage treatment plant, the construction of the Tuul-1 main collector pipeline is necessary. This pipeline will reduce the load on the existing primary collector by 35% and enable the reception of wastewater from residential areas under construction in Gachuurt, Uliastai, Nalaikh, Amgalan, Sharhad, Dambadarjaa, Bayankhoshuu, Tolgoit, and Bayangol.

Mr P. Sainzorig performed the opening bell ceremony for the “Ulaanbaatar Bond” trading and left a note in the MSE's commemorative book to mark the event's conclusion.

  MONGOLIAN STOCK EXCHANGE