DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report

Treasury Management Division 5/4/2017

News Highlights Mongolian Economic Main Indicators

Mongolia Indicators Unit 2016.03 2017.03 Year/chg %
PARLIAMENTARY STANDING COMMITTEE DISCUSS Money Supply (M2) bln.MNT 10,112.40 12,177.70 20%
UNPROFITABLE ENTERPRISES (montsame.mn) Inflation /Year to date/ % 1.20% 2.10% 75.0%
Ulaanbaatar /MONTSAME/ During the meeting of Parliamentary Equilibrated overall bal of budget bln.MNT (615.70) (255.10) -59%
Standing Committee on Economics held on May 2, Ts.Nyam-Osor, Head Trade balance mln.USD 359.90 523.70 45.5%
of the Agency for Policy Coordination on State Property held a discussion Export /accumulated/ mln.USD 958.90 1,299.90 36%
on current issues. According to Ts.Nyam-Osor, a total of 94 percent of Import /accumulated/ mln.USD 599.10 776.20 30%
160 state-owned companies is operating on a deficit budget. The overall
revenues of these companies were MNT 105 billion, while the Policy rates
expenditures skyrocketed to MNT 111 billion in 2016. With over MNT 6 Central Banks interest rates Latest % Previous % Updated date
billion of deficit, these companies are in debt of MNT 48 billion. He Policy rate of Mongolbank /BOM/14.00 15.00 12/19/2016
informed that a draft Parliamentary resolution on privatization in 2017- PBC base interest rate (China) 4.35 4.60 10/24/2015
2020 has been submitted to the Government. The draft claimed to be FED - Federal Funds Rate 1.00 0.75 3/14/2017
included full divestiture of 8 companies, reduction of Government's stakes ECB - main refinancing rate 0.00 0.05 3/16/2016
in 5 companies and restructuring of 3 companies. Since the Government's BOE official bank rate (England) 0.25 0.50 8/4/2016
decision hasn't been made yet, further information is yet to be disclosed.
During the meeting, MP D.Damba-Ochir said Government should cease
to intervene in private entities. Due to the establishment of the Mongolian Bank of Mongolia - Interest corridor
Agricultural Commodity Exchange, the price of leather declined. As such, Indicators Latest % Previous % Updated date
some counterproductive state-owned companies, including the "State Overnight repo 17.00 18.00 12/19/2016
Housing Corporation of Mongolia" and "Telecom Mongolia" JSC need to Overnight deposit 13.00 14.00 12/19/2016
be privatized. Repo 16.00 17.00 12/19/2016

Preliminary court rules on Erdenet as the government says it intends to Money market interest rates
compensate (theubpost.mn) Indicators Rates % Daily chg % Yearly chg %
Much anticipated litigation over Erdenet Mining Corps 49 percent stake Libor USD 2M 1.0436 0.62 27.36
ownership has already commenced at a number of Mongolian courts, and Libor USD 3M 1.1737 0.12 17.62
multiple rulings have been issued in Mongolian Copper Corporations Libor USD 6M 1.4324 0.43 8.71
favor, CEO of the company Purevtuvshin Tsooj says. The Civil Court of Libor EUR 2M -0.3800 -0.38 -7.48
Sukhbaatar District issued a preliminary court injunction on April 10, Libor EUR 3M -0.3621 0.20 -7.64
2017, to prevent the Government Agency for Policy Coordination on State
Property (the alleged 100 percent shareholder of EMC on the Official exchange rates - BOM Cross rates
governments behalf) to hold another shareholders meeting and take other
Official rates Cross rates 5/4/17 9:06
corporate action concerning EMC, Purevtuvshin said. The injunction also
USD/MNT 2417.32 EUR/USD 1.0891
prohibited the new board, fully appointed by the government, to have new
EUR/MNT 2639.47 GBP/USD 1.2875
board meetings and to carry out any structural changes at EMC.
GBP/MNT 3125.35 USD/CHF 0.9943
Purevtuvshin says the civil court injunction is vital for his company to
CNY/MNT 350.66 USD/CNY 6.8989
protect its interests during the judicial process, and to prevent the
Government Agency for Policy Coordination on State Property to carry JPY/MNT 21.55 USD/JPY 112.84
out anticipated structural changes at the company. It is a well-known
practice in Mongolia for new management to change the organizational Mongolian Bonds information
structure of a company to install it nominated people. Bonds Currency Yield % Last price Daily chg%
Mongol 2018 USD 4.01 100.11 -0.06%
USA Mongol 2021 USD 6.03 116.69 0.04%
Fed holds interest rates steady, downplays first quarter economic weakness Mongol 2022 USD 5.96 96.18 0.08%
Fed rate hike could move quicker than expected, says Credit Suisse Mongol 2024-Khuraldai bond
USD 6.62 111.54 0.20%
Fed Signals Gradual Rate-Hike Approach Intact Despite Soft Patch Mongol 2018-Dim sum bond
CNY 8.09 99.35 0.00%
Europe DBM-Samurai 2023 JPY 0.92 103.73 0.00%
GDP up by 0.5% in the euro area and by 0.4% in the EU28 TDBM-2020 bond USD 6.39 108.58 0.11%
Bank of Russia enacts basic forex market standards, at last MMC bond USD 13.72 #N/A N/A 0.00%
UK: Construction growth picks up in April, driven by work on civil engineering projects
North Asia Commodity Trading Prices
South Korea's Presidential Favorite Signals Warmer Ties With Kim Commodities Latest price Daily chg% Yearly chg%
JPMorgan to Move Hundreds of Staff to EU Offices on Brexit (3) Crude oil /WTI-New York/ $47.64 -0.38 -11.32
China Seeks to Calm Investors With Words and Cash After Rout (1) Gold Spot /ounce/ $1,238.96 0.06 7.97
Commodity market Copper /LME/ $5,600.00 -3.48 1.17
U.S. oil stocks fall slightly, gasoline inventories up - EIA Iron ore /Beijing/ 510.00 0.00 13.33
Oil Traders Idled as China Refiner Stars Fall Foul of Smog Fight Coal /Tianjin/ 1,650.00 0.00 -6.25
Oil eases, near weakest since late March on small U.S. stocks decline

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

1 montsame.mn, news.mn, gogo.mn
DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report
Treasury Management Division 5/4/2017

Previous day's economic calendars Today's economic calendars

Event Period Forecast Actual Previous Event Time Period Estimated Previous

PPI YoY Mar 4.20% 3.90% 4.50% Markit Eurozone Services PMI 05/04/2017 04:00 Apr F 56.20 56.20
GDP SA QoQ 1Q A 0.50% 0.50% 0.40% Markit Eurozone Composite PMI
05/04/2017 04:00 Apr F 56.70 56.70
MBA Mortgage Applications 28-Apr -- -0.10% 2.70% Retail Sales YoY 05/04/2017 05:00 Mar 2.10% 1.80%
ADP Employment Change Apr 175k 177k 263k Trade Balance 05/04/2017 08:30 Mar -$44.5b -$43.6b
Markit US Services PMI Apr F 52.50 53.10 52.50 Unit Labor Costs 05/04/2017 08:30 1Q P 2.70% 1.70%
Markit US Composite PMI Apr F -- 53.20 52.70 Initial Jobless Claims 05/04/2017 08:30 29-Apr 248k 257k
ISM Non-Manf. Composite Apr 55.80 57.50 55.20 Continuing Claims 05/04/2017 08:30 22-Apr 1990k 1988k
Caixin China PMI Composite Apr -- -- 52.10 Factory Orders 05/04/2017 10:00 Mar 0.40% 1.00%
Caixin China PMI Services Apr -- -- 52.20 Durable Goods Orders 05/04/2017 10:00 Mar F 0.70% 0.70%

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% 99.82 100.33 4.40 3.61 0.7 5-Jan-13 5-Jan-18
Mongol 2021 500 10.875% 116.29 117.02 6.12 5.93 3.9 6-Apr-16 6-Apr-21
Mongol 2022 1,000 5.125% 95.75 96.40 6.03 5.89 5.6 5-Dec-12 5-Dec-22
Mongol 2024-Khuraldai bond 600 8.750% 111.22 111.87 6.68 6.56 6.9 9-Mar-17 9-Mar-24
Mongol 2018 - Dim sum bond 1 billion CNY 7.500% 98.98 99.72 8.43 7.74 1.2 30-Jun-15 30-Jun-18
DBM - Samurai 2023 30 billion JPY 1.520% 103.57 103.89 0.95 0.90 6.6 16-Dec-13 25-Dec-23
TDBM - 2020 bond 500 9.375% 107.64 108.58 6.55 6.22 3.0 19-May-15 19-May-20
MMC 2017 600 8.875% 64.16 65.18 13.83 13.62 -0.1 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 (%)
104.1 1.1%
100 118 1.1%
100.016 103.9
1.0%
115
97 96.025 103.7 1.0%
112 103.730 1.0%
94 103.5 1.0%
/Year to date/ 109 0.9%
91 111.484 103.3
106
0.9%
103.1 0.894% 0.9%
88 /Year to date/
103 0.8%
102.9 0.8%
85 100

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

2 montsame.mn, news.mn, gogo.mn
DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report
Treasury Management Division 5/4/2017

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 3/31/2017 United States
UBS 17,840 3.57% (400.00) 1/31/2017 Switzerland
TCW GROUP INC 15,816 3.16% 0.00 3/31/2017 United States
PRUDENTIAL FINANCIAL INC 13,700 2.74% (2,000.00) 3/31/2017 United States
EATON VANCE CORP 9,668 1.93% 0.00 5/31/2016 United States
LAZARD LTD 9,320 1.86% 0.00 3/31/2017 Bermuda
T ROWE PRICE GROUP INC 7,543 1.51% 0.00 3/31/2015 United States
NORDEA BANK AB 5,895 1.18% 0.00 3/31/2017 Sweden
ABERDEEN 5,315 1.06% 4,004.00 3/31/2017 United Kingdom
AXA 4,400 0.88% 4,400.00 6/30/2016 France
BLACKROCK 4,045 0.81% (650.00) 1/31/2017 United States
SCHRODER INV MGMT TAIWAN LTD 3,766 0.75% (19.00) 2/28/2017 Taiwan
PRUDENTIAL PLC 3,700 0.74% (300.00) 3/31/2017 United Kingdom
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 92,928 9.29% (18884.00) 5/2/2017 United States
ALLIANCE BERNSTEIN 36,490 3.65% 2323.00 3/31/2017 United States
PRUDENTIAL FINANCIAL INC 30,120 3.01% 1505.00 3/31/2017 United States
FMR LLC 25,620 2.56% 0.00 3/31/2017 United States
GOLDMAN SACHS GROUP INC 21,334 2.13% (7140.00) 3/31/2017 United States
GRANTHAM MAYO VAN OTTERLOO & CO 17,100 1.71% (1500.00) 11/30/2016 United States
DANSKE BANK A/S 15,222 1.52% 0.00 3/31/2017 Denmark
PRUDENTIAL PLC 10,500 1.05% 0.00 3/31/2017 United Kingdom
T ROWE PRICE GROUP INC 10,496 1.05% 0.00 3/31/2015 United States
FRANKLIN RESOURCES 9,400 0.94% (12100.00) 3/31/2017 United States
LAZARD LTD 8,985 0.90% (415.00) 3/31/2017 Bermuda
UBS 8,863 0.89% (1158.00) 3/31/2017 Switzerland
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
SEI INVESTMENTS CO 3,642 0.61% 39,830.00 3/31/2017 United States
SYDINVEST INTERNATIONAL 3,301 0.55% 3,642.00 3/31/2017 Denmark
BLACKROCK 2,945 0.54% 3,301.00 5/2/2017 United States
NORDEA BANK AB 2,805 0.47% 2,945.00 3/31/2017 Sweden
LANDESBANK BERLIN INVESTMENT GMB 1,500 0.25% 2,805.00 3/31/2017 Germany
GOLDMAN SACHS GROUP INC 1,420 0.24% 1,500.00 3/31/2017 United States
AMERIPRISE FIN GRP 700 0.12% 1,420.00 3/31/2017 United States

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, theubpost.mn,

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