Mayer Brown represented Development Bank of Mongolia LLC, Mongolia's development and export-import bank, in its benchmark US$500 million five-year bond that closed this week.
DBM, a wholly Government-owned and systematically important bank,were priced at 98.973% on a coupon of 7.25% to yield 7.50%.
The bank will use the net proceeds to refinance existing debt, lower its cost of funding and extend the maturity profile of its existing indebtedness. Commentators have noted that this successful issuance marks another step in Mongolia's positive trajectory by refinancing short-dated U.S. dollar-denominated debt and reducing interest rate risk by shifting a portion of borrowings to a fixed interest rate.
"The latest bond issuance marked the bank's successful return to the international markets. We are very pleased to have worked with DBM on this significant step in DBM's evolution," said Jason T. Elder, partner at Mayer Brown LLP and global co-leader of the firm's Corporate & Securities practice.
DBM, which plays a key role in sustaining Mongolia's economic reform, is a long-standing client of Mayer Brown.
The Mayer Brown team was led by Jason T. Elder and included Thomas Kollar (Hong Kong), Doos Choi (Hong Kong), Jason Bazar (New York), Jared Goldberger (New York) and Lennine Occhino (Chicago).