Mongolia starts tender offer for 10 7/8% notes due 2021, 5 1/8% notes due 2022

Chicago, Sept. 21 – Mongolia started an any-and-all tender offer for its 10 7/8% bonds due 2021 and a capped offer for its 5 1/8% bonds due 2022, according to an announcement.

There are $500 million outstanding of the 10 7/8% notes due 2021 (ISINs: US60937GAD88, US60937GAB23). The notes will be repurchased for $1,044 per $1,000 face amount of notes.

In the capped offer, there are $1 billion outstanding of the 5 1/8% notes due 2022 (ISINs: US60937GAB23, US60937FAB40). Noteholders will receive $1,024.50 per $1,000 principal amount of notes.

Interest to the settlement date will also be paid for the notes.

The maximum acceptance amount for the 2022 notes is expected to be announced at 9 p.m. ET on Sept. 27. If tenders exceed the maximum acceptance amount for the 2022 notes, bonds will be accepted for purchase on a pro rata basis.

The offer is subject to a financing condition. The government intends to issue new Rule 144A and Regulation S notes.

Noteholders who wish to subscribe to the new notes should contact any dealer manager to obtain an allocation identifier code to submit with their tender instructions.

Codes are not necessary to tender notes; however, the government may prioritize tenders from investors interested in subscribing to the new notes.

The offer expires at 5 p.m. ET on Sept. 25.

The government will announce the results of the tender offer at 9 p.m. ET on Sept. 27.

Final results will be announced on Sept. 29.

The offer is expected to settle on Oct. 7.

The tender and information agent for the offer is Morrow Sodali Ltd. (+44 20 8089 3287, 203 609-4910, +852 2158 8405; mongolia@investor.morrowsodali.com; https://bonds.morrowsodali.com/mongolia).

Dealer managers for the offer are J.P. Morgan Securities plc (+44 20 7134 1470, +852 2800 7650; fax: +44 20 3493 1413; Liability_Management_HK@jpmorgan.com), Morgan Stanley & Co. International plc (800 624-1808, 212 761-1057, +44 20 7677 5040, +852 2239 1484; fax: +44 20 7056 4984; liabilitymanagement@morganstanley.com), Nomura International (Hong Kong) Ltd. (+852 2536 7056, +44 20 7103 6597; fax: 852 2536 1888; Liability.Management@nomura.com) and HSBC Ltd. (888-HSBC-4LM; +852 3941 0223, +44 20 7992 6237, 212 525-5552; liability.management@hsbcib.com).

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