Friday, July 25, 2014

[BREAKING: DBM raising $200m in loans, backed by GoM guarantee, with $100m greenshoe option]

Please click Display Images or Download Pictures to properly view this newswire


Friday, July 25, 2014

Follow the news on Facebook, Twitter and view archive here


Mogi: DBM steps in where TDB couldn’t without a GoM guarantee

Development Bank of Mongolia out with $200m

The Development Bank of Mongolia is raising a $200m loan that features a $100m greenshoe option, made even more appealing with a guarantee from the country's government

By Shruti Chaturvedi

July 24 (GlobalCapital) Credit Suisse is the sole bookrunner for the deal, which is split into three portions: a three year bullet, which pays a margin of 425bp over dollar libor, a five year amortiser offering 437.5bp, and a seven year amortiser paying 450bp over libor.

Lenders are allowed to commit to any or all of the tranches, said a banker.

The deal is open to banks at three levels of participation - mandated lead arrangers coming in with commitments of $50m or over will earn 125bp as fees for the three year, 150bp for the five year and 175bp for the seven year.

Lead arrangers pledging between $25m and $49m earn fees of 110bp, 125bp and 150bp for the three tranches respectively, while co-arrangers committing between $10m and $24m net fees of 85bp, 100bp and 125bp, respectively

The fundraising comes just after the Trade & Development Bank of Mongolia had to pull a dollar bond issue when investors were reluctant to open their portfolios to Mongolian risk.

However, because the DBM loan comes backed by a guarantee from the government of Mongolia, it is unlikely to run into similar headwinds, according to bankers.

Link to article



Room #5, Coffice Hub, 5th Floor, Time Center
21 Baga Toiruu Street, Sukhbaatar District 8
Ulaanbaatar, Mongolia 15160
P Please consider the environment before printing this e-mail.

No comments:

Post a Comment