Government securities issued through the Mongolian Stock Exchange were auctioned by competitive bidding during 2010-2011, and then by non-competitive auction starting from 2014 when the bond trading resumed at the stock exchange.

Competitive bidding auctions were re-adopted in the market from July 2017; today marks the first issue auctioned in competitive bidding, which was traded successfully on the Mongolian Stock Exchange.

The Ministry of Finance announced the issue of 60,000 securities with a maturity of 39 weeks, with the issue oversubscribed by more than twice. As a result of competitive bidding, yield to maturity declined from 11.7% to 10.3% p.a., which has effectively reduced the state’s interest payment to the bondholders by approximately 84.0 million tugriks.

MONGOLIAN STOCK EXCHANGE