DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report

Treasury Management Division 4/6/2017

News Highlights Mongolian Economic Main Indicators

Mongolia Indicators Unit 2016.02 2017.02 Year/chg %
Foreign exchange reserves declined by 12.5% (montsame.mn) Money Supply (M2) bln.MNT 10,011.00 12,260.70 22%
Foreign exchange reserves of Mongolia is declining. Volume of foreign Inflation /Year to date/ % 1.20% 2.10% 75.0%
Equilibrated overall balance of
exchange reserves of the country amounted to US$ 1.05 billion at the end bln.MNT (258.50) (211.70) -18%
budget
of Feb, 2017 reports Central bank of Mongolia. The report of the Central Trade balance mln.USD 261.20 334.20 27.9%
bank says that the foreign exchange reserve reduced by 12.5 percent Export /accumulated/ mln.USD 613.30 825.30 35%
compared to same period of last year. Foreign exchange reserves peaked Import /accumulated/ mln.USD 352.10 491.00 39%
at US$ 1.3 billion in Nov 2016.The Central bank was raising the reserves
by monetizing gold purchased from individuals and entities. Moreover, Policy rates
sharp rise in international coal price in the last months of 2016 Central Banks' interest rates Latest % Previous % Updated date
contributed to increasing currency reserves. The agreement between Policy rate of Mongolbank /BOM/14.00 15.00 12/19/2016
Mongol Bank and the Peoples Bank of China to swap MNT for RMB PBC base interest rate (China) 4.35 4.60 10/24/2015
has been extended by three years, which considered to declining external FED - Federal Funds Rate 1.00 0.75 3/14/2017
debt burden due to it enables a backup plan to attract foreign sources if ECB - main refinancing rate 0.00 0.05 3/16/2016
needed.
Bank of Mongolia implementing project to build gold refinery BOE official bank rate (England) 0.25 0.50 8/4/2016
(montsame.mn)
Ulaanbaatar /MONTSAME/ The Bank of Mongolia purchased 18.3 tons Bank of Mongolia - Interest corridor
of gold in 2016 and is aiming to buy 20 to 25 tons annually between 2017 Indicators Latest % Previous % Updated date
and 2020. Following this objective, the working group was assigned to Overnight repo 17.00 18.00 12/19/2016
research opportunities to build domestic gold refinery. In compliance with Overnight deposit 13.00 14.00 12/19/2016
the first stage of the National Sustainable Development Agenda 2030 and Repo 16.00 17.00 12/19/2016
government's Gold-2 project, a joint working group was established to be
composed of the central bank, Ministry of Mining and Heavy Industry,
Money market interest rates
Erdenes Mongol LLC and Precious Metals Assay Inspection
Indicators Rates % Daily chg % Yearly chg %
Department to conduct studies on opportunities to build domestic gold
Libor USD 2M 1.0283 0.27 25.49
refinery and is now preparing plans for 2017.
Libor USD 3M 1.1498 0.00 15.23
Construction begins on the new Yarmag Bridges (montsame.mn) Libor USD 6M 1.4257 -0.04 8.20
The foundation stone for new twin bridges in Yarmag was laid on April 3. Libor EUR 2M -0.3750 -0.57 -6.06
The old Yarmag Bridge, built in 1959, will be redeveloped into twin Libor EUR 3M -0.3593 0.39 -6.79
bridges in the 4th khoroo of Khan-Uul District over the next four years.
The project is being funded by a soft loan from the Chinese government. Official exchange rates - BOM Cross rates
The projects implementer believe that the project will boost economic Official rates Cross rates 4/6/17 10:03
growth, provide safer and more comfortable driving conditions, and USD/MNT 2437.51 EUR/USD 1.0681
expand the citys transportation and logistics network once completed. EUR/MNT 2602.16 GBP/USD 1.2494
The foundation stone for new twin bridges in Yarmag was laid on April USD/CHF
GBP/MNT 3032.63 1.0029
3.The old Yarmag Bridge, built in 1959, will be redeveloped into twin
CNY/MNT 353.54 USD/CNY 6.8948
bridges in the 4th khoroo of Khan-Uul District over the next four years.
JPY/MNT 22.04 USD/JPY 110.36
The project is being funded by a soft loan from the Chinese government.
The projects implementer believe that the project will boost economic
Mongolian Bonds information
growth, provide safer and more comfortable driving conditions, and
Bonds Currency Yield % Last price Daily chg%
expand the citys transportation and logistics network once completed.
Mongol 2018 USD 4.19 99.96 -0.040%
USA Mongol 2021 USD 6.31 115.82 0.023%
Trump says chemical attack in Syria crossed many lines Mongol 2022 USD 6.21 94.86 -0.040%
Fed minutes see rate hikes this year on job, price views Mongol 2024-Khuraldai bond
USD 6.90 110.04 0.069%
Dollar Direction Depends on FOMC and U.S/China Summit Mongol 2018-Dim sum bond
CNY 8.36 99.00 0.000%
Europe DBM-Samurai 2023 JPY 0.95 103.61 0.082%
Eurozone growth at near six-year high as Germany and France accelerate TDBM-2020 bond USD 6.74 107.72 -0.019%
EU, Greece urge deal on bailout review on Friday MMC bond USD 13.84 #N/A N/A 0.314%
ECB's Weidmann says time to ease up on Bond Purchases is nearing
North Asia Commodity Trading Prices
Signs point away from Trump labeling China currency manipulator Commodities Latest price Daily chg% Yearly chg%
Asia stocks slip, investors on edge for Trump-Xi meeting Crude oil /WTI-New York/ $50.90 -0.49 -5.25
Japan PM Abe says he, Trump agree North Korea missile launch a 'serious threat' Gold Spot /ounce/ $1,257.76 0.16 9.61
Commodity market Copper /LME/ $5,895.00 2.00 6.49
Crude drops in Asia on surprise U.S. crude build, demand eyed Iron ore /Beijing/ 590.00 0.00 31.11
Oil eases off one-month high on surprise U.S. crude build Coal /Tianjin/ 1,590.00 1.27 -9.66

Sources: bloomberg terminal, 1212.mn, bloombergtv.mn,

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DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report
Treasury Management Division 4/6/2017

Previous day's economic calendars Today's economic calendars

Event Period Forecast Actual Previous Event Time Period Estimated Previous

EC Markit Eurozone Services PMI Mar F 56.50 56.00 56.50 EC Markit Eurozone Retail PMI 04:10 Mar -- 49.90
EC Markit Eurozone Composite PMIMar F 56.70 56.40 56.70 US Challenger Job Cuts YoY 07:30 Mar -- -40.00%
US MBA Mortgage Applications 31-Mar -- -1.60% -0.80% US Initial Jobless Claims 08:30 1-Apr 250k 258k
US ADP Employment Change Mar 185k 263k 298k US Continuing Claims 08:30 25-Mar 2030k 2052k
US Markit US Services PMI Mar F 53.10 52.80 52.90 US Bloomberg Consumer Comfort 09:45 2-Apr -- 49.70
US Markit US Composite PMI Mar F -- 53.00 53.20 JN Official Reserve Assets 19:50 Mar -- $1232.3b
CH Caixin China PMI Composite Mar -- -- 52.60 JN Real Cash Earnings YoY 20:00 Feb -- 0.00%
CH Caixin China PMI Services Mar -- -- 52.60 JN Labor Cash Earnings YoY 20:00 Feb 0.50% 0.50%

Related information of Mongolian Bonds issued on international market (bloomberg)

Amount Price YTM Remaining
Issuer Coupon Issued Date Maturity Date
(mln USD) Bid Ask Bid Ask years (year)
Mongol 2018 500 4.125% 99.69 100.21 4.56 3.82 0.8 5-Jan-13 5-Jan-18
Mongol 2021 500 10.875% 115.46 116.26 6.42 6.21 4.0 6-Apr-16 6-Apr-21
Mongol 2022 1,000 5.125% 94.54 95.25 6.29 6.13 5.7 5-Dec-12 5-Dec-22
Mongol 2024-Khuraldai bond 600 8.750% 109.77 110.32 6.95 6.85 6.9 9-Mar-17 9-Mar-24
Mongol 2018 - Dim sum bond 1 billion CNY 7.500% 98.66 99.34 8.66 8.06 1.2 30-Jun-15 30-Jun-18
DBM - Samurai 2023 30 billion JPY 1.520% 103.45 103.78 0.97 0.92 6.7 16-Dec-13 25-Dec-23
TDBM - 2020 bond 500 9.375% 106.83 107.72 6.89 6.58 3.1 19-May-15 19-May-20
MMC 2017 600 8.875% 63.61 64.61 13.95 13.74 0.0 29-Mar-12 29-Mar-17

Last Prices of Mongolian Bonds issued on international market (Last 3 months)

Mongol 2018, Mongol 2022. Mongol 2024 - Last price DBM Samurai - Mid Line & Mid Yield to Maturity

Mongol 2018 Mongol 2022 Mongol 2024 (Khuraldai bond)

Last Price (JPY) Mid Line (%)
103 103.6
99.933 118 1.1%
100 103.5
94.418 115 103.4
1.1%
97 103.481
94 112 103.3 1.0%
/Year to date/
91 109 103.2 1.0%
109.537 106 1.0%
88 103.1
/Year to datet/ 0.9%
85 103 103.0
0.969%
82 100 102.9 0.9%

Sources: bloomberg terminal, 1212.mn, bloombergtv.mn,

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DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report
Treasury Management Division 4/6/2017

Bond Holders' Information /Top Holders/

Bond holders of Mongol 2018

Names Position % of position Latest change Fiing date Country
FMR LLC 35,900 7.18% 0.00 2/28/2017 United States
UBS 18,240 3.65% 0.00 12/30/2016 Switzerland
TCW GROUP INC 15,816 3.16% 0.00 2/28/2017 United States
PRUDENTIAL FINANCIAL INC 13,700 2.74% (2,000.00) 2/28/2017 United States
EATON VANCE CORP 9,668 1.93% 0.00 5/31/2016 United States
LAZARD LTD 9,320 1.86% 3,730.00 12/31/2016 Bermuda
T ROWE PRICE GROUP INC 7,543 1.51% 0.00 3/31/2015 United States
NORDEA BANK AB 5,895 1.18% (200.00) 2/28/2017 Sweden
SCHRODERS PLC 5,360 1.07% (535.00) 12/30/2016 United Kingdom
BLACKROCK 4,695 0.94% 0.00 12/31/2016 United States
AXA 4,400 0.88% 4,400.00 6/30/2016 France
PRUDENTIAL PLC 4,000 0.80% (245.00) 2/28/2017 United Kingdom
SCHRODER INV MGMT TAIWAN LTD 3,766 0.75% (19.00) 2/28/2017 Taiwan
MEDIOLANUM INTERNATIONAL FUNDS 3,134 0.63% 0.00 6/30/2016 Ireland

Bond holders of Mongol 2022

Names Position % of position Latest change Fiing date Country
BLACKROCK 110,912 11.09% (3674.00) 4/3/2017 United States
ALLIANCE BERNSTEIN 35,283 3.53% 1116.00 2/28/2017 United States
PRUDENTIAL FINANCIAL INC 29,920 2.99% 1105.00 2/28/2017 United States
FMR LLC 25,620 2.56% 0.00 2/28/2017 United States
GOLDMAN SACHS GROUP INC 24,114 2.41% (2645.00) 2/28/2017 United States
GRANTHAM MAYO VAN OTTERLOO & CO 18,600 1.86% 0.00 5/31/2016 United States
FRANKLIN RESOURCES 18,500 1.85% (3000.00) 12/31/2016 United States
DANSKE BANK A/S 15,222 1.52% 0.00 2/28/2017 Denmark
PRUDENTIAL PLC 10,500 1.05% 0.00 2/28/2017 United Kingdom
T ROWE PRICE GROUP INC 10,496 1.05% 0.00 3/31/2015 United States
UBS 10,021 1.00% (430.00) 2/28/2017 Switzerland
LAZARD LTD 9,400 0.94% 2025.00 2/28/2017 Bermuda
NN GROUP NV 7,420 0.74% 0.00 3/31/2016 Netherlands

Bond holders of Mongol 2024

Names Position % of position Latest change Fiing date Country
LANDESBANK BERLIN INVESTMENT GMB 1,500 0.25% 1,500.00 3/31/2017 Germany

This presentation has been prepared solely for informational purposes only and its not to be construed as a solicitation or any offer to buy or sell securities, commodities, or
related financial instruments.

Contact us:ALTMD-TMD, Tel:+976-7585 7070/ext: 310/

Sources: bloomberg terminal, 1212.mn, bloombergtv.mn,

3 montsame.mn, news.mn, gogo.mn, ikon.mn