octobre 09 2020

Mayer Brown represents lead arrangers and dealer-managers on Government of Mongolia's US$600 million debt offering and concurrent cash tender offers


Mayer Brown advised the lead arrangers and dealer-managers in connection with the issuance of US$600 million 5.125% bonds due 2026 by the Government of Mongolia and its concurrent offer to repurchase 10.875% senior notes due 2021 and 5.125% senior notes due 2022.

The deal, representing a rare sovereign issuance in Asia-Pacific following the Covid-19 outbreak, attracted strong demand from global investors.

"We are pleased to have advised our banking clients on this successful bond offering and honoured to have been involved in Mongolia’s landmark transaction," said Jason T. Elder, a partner and leader of Mayer Brown’s global Corporate & Securities practice group. "Our frequent work on Mongolia-related matters has established us as a go-to firm for complex frontier market transactions, " he added.

As a first-of-its kind sustainable sovereign transaction in Asia, Mongolia’s issuance extended the maturity profile of the Government’s debt and reduced debt servicing costs.  These cost savings enable the Government to increase spending on sustainable activities, included in a sustainability roadmap and consistent with Mongolia’s sustainability objectives.

These sustainable activities include a broad range of goals including development of hydropower projects and schools as well as the continuing development of affordable housing to reduce substandard living conditions in the ger districts where winter heating requires burning wood or low-quality coal that exacerbates urban pollution.

"This benchmark issuance and liability management transaction brings significant benefits to Mongolia. We are really pleased to have been involved and to have played a small part in supporting the continued development of the country and its people," said Mr. Elder.

The Mayer Brown team was led by Corporate & Securities partner Jason T. Elder (Hong Kong) and included: Tax Transactions & Consulting partner Jared Goldberger and associate Brennan Young (both New York); Corporate & Securities partner Thomas Kollar (Hong Kong); Government and Global Trade partner Tamer Soliman (Washington, DC); and Litigation & Dispute Resolution partner Yu Jin Tay and associate Si Cheng Lim (both Singapore).



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