AKIPRESS.COM - The Government of Mongolia has announced that it will be repaying $104 million of $580 million bond which will be maturing on 21st of March.

In February, the Ministry of Finance announced that the government would be issuing $600 million Khuraldai bond to offer existing bondholders of the DBM bond the opportunity to exchange their initial Euro bond notes. The Khuraldai is a seven-year bond with an interest rate of 8.75 percent. Reported $476 million in bonds were exchanged for the new Khuraldai bond.

The bondholders who exchanged their notes now own bond shares for the new sovereign bond guaranteed by the government. The remaining $124 million shares of the Khuraldai bond are being offered to new investors with an interest rate of 8.25 percent. Financing from the remaining bonds will be used to repay $104 million owed to Euro bondholders who chose not to exchange their notes.