Today /2024-10-15/ the ringing of the bell ceremony was organized at the premises of the “Mongolian Stock Exchange” LLC and started the primary market trading for the USD 25 million “Green Bond” offered to strategic investors under the “Green Bond Program” of “Khan Bank” JSC.

The ceremony was attended by several dignitaries, including Tsogtbayar. J, Interim CEO of the “Mongolian Stock Exchange” JSC, Bayarsaikhan. D, Chairman of the Financial Regulatory Commission, Tserenbadral. T, Deputy Chairman of the FRC, Munkhbayar. G, Deputy Executive Director responsible for Risk at Khan Bank, Uugandor. T, Deputy Director responsible for Corporate Banking, Lkhagvadorj. B, CEO of “BDSEC” JSC, Edward Faber, Senior Economist at the Asian Development Bank, Hannes Takacs, Resident Representative of the European Bank for Reconstruction and Development in Mongolia, among others.

Tsogtbayar. J, opened the ceremony and stated:

“I am pleased that the team at Khan Bank continues to implement major goals to significantly increase its green financing portfolio, which supports environmentally friendly initiatives. Internationally, green bonds contribute to addressing significant environmental and social issues, providing favorable conditions for investors compared to other investment instruments, such as tax exemptions and reductions. By joining Mongolia's sustainable financing programs and contributing to the UN's 17 Sustainable Development Goals, our team, which successfully raised USD 60 million through Mongolia's first green bond issued on the international market in 2022, is now pleased to launch the primary market trading of the USD 'Green Bond' to attract financing from the domestic capital market. I wish success in the trading activities and officially declare the ceremony open.”

D. Bayarsaikhan, Chairman of the Financial Regulatory Commission, noted:

“First and foremost, I would like to highlight that a new event is taking place in Mongolia's capital market. Mongolia, particularly its financial sector, has recently joined the principles of green and sustainable financing, having been one of the first countries in the world to approve a Green Taxonomy and a green roadmap in 2019. Last year, we took this step further by including IT, energy, and other sectors. The Financial Regulatory Commission has made provisions allowing companies to issue bonds in series based on their financing needs within the bond program established in 2021. Together with the Mongolian National Chamber of Commerce and Industry, we have outlined regulations that do not require collateral or guarantees for the national TOP-100 enterprises to issue debt instruments. Additionally, there are favorable provisions for registering green debt instruments, or green bonds. In this context, Khaan Bank successfully attracted funding through green bonds on the international market for the first time, after which it received approval from the Financial Regulatory Commission to issue green bonds domestically. Previously, we had attracted funding equivalent to 17 billion MNT from the Mongolian capital market, and today we are introducing a new product that combines both MNT and USD to raise financing equivalent to USD 25 million.”

G. Munkhbayar, Deputy Executive Director responsible for Risk at Khaan Bank, expressed gratitude to the esteemed guests gathered:

Our bank plans to raise a total of USD 30 million equivalent in two phases as part of the 'Green Bond Program' approved in May 2023. In the first phase, we will offer a green bond amounting to 5 million USD, equivalent to 17 billion MNT, to the public for the first time in the Mongolian capital market in December 2023. In the next phase of the program, we will offer 250,000 bonds, each with a nominal price of USD 100, a maturity of 3 years, with a compounded SOFR rate of +3.40%, aiming to raise USD 25 million.

I would like to express my appreciation to the regulatory bodies involved in this initiative—the Financial Regulatory Commission, the Mongolian Stock Exchange, and the underwriting companies, legal firms, and the entire team at Khaan Bank. The significance of this bond lies in raising sources of green financing and continuing to contribute to the President of Mongolia’s commitment to reduce greenhouse gas emissions by 22.7% by 2030.”

In the end, she rang the bell to open the primary market trading to officially open the trading session.

MONGOLIAN STOCK EXCHANGE