ADB issues inaugural Uzbekistan sum-denominated bond and third Mongolian togrog bond in 2025
The Asian Development Bank (ADB) is continuing the expansion of its local currency bond program, which enables its members to access local currency financing at competitive rates while simultaneously mitigating borrowers’ currency risks, thereby supporting more efficient and inclusive development, Kazinform News Agency cites the press service of the Bank.
ADB issued its first Uzbekistan sum (UZS) denominated bond in June, raising UZS312 billion (approximately $24.7 million equivalent). Arranged by Merrill Lynch International, the bond was priced at par with a coupon of 14.5% with a final maturity of 3 years. Proceeds of this gender bond were disbursed to support women-owned enterprises outside the capital, Tashkent.
In July, ADB priced its third Mongolian togrog (MNT) bond for the year, which raised MNT30 billion (approximately $8.4 million). The bond was priced at par with a coupon of 10.30% and has a maturity of 3 years. It was underwritten by Standard Chartered Bank and was fully allocated to asset managers in Europe. Proceeds of this health bond will be used to finance a hospital expansion project in Mongolia.
The inaugural UZS denominated bonds not only increased the number of currencies in which ADB can issue, but also allowed us to reach a new set of investors. On the other hand, the MNT bond reflects ADB’s successful and growing local currency operations in Mongolia, said ADB Treasurer Tobias Hoschka. “These bond issues reflect ADB's efforts to assist borrowers who are most vulnerable to foreign currency risks in such frontier markets and reinforce our strategic commitment to advancing local currency financing initiatives.”
Earlier, it was reported Mali, Niger and Burkina Faso announced the establishment of a joint investment bank aimed at enhancing economic integration among the three countries.