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Mongolian Mortgage Corporation has announced an "Exchange offer" for its USD bond issued internationally

On January 4, 2024, Mongolian Mortgage Corporation HFC (MIK) LLC introduced an "Exchange Offer" for its 8.85% coupon USD bonds acquired from the international stock market in 2021. Bondholders facing maturity in February 2024 have the opportunity to exchange their existing bonds for the company's newly issued ones. Two specific exchange conditions are outlined:

1. Acquire a new bond valued at $1,050 for every $1,000 of the nominal value of the current bond.

2. Exchange $700 of the $1,000 bond held by the investor for a new bond, supplementing with a $300 cash payment and an additional $40 exchange fee.

The majority of the USD 250 million bonds traded internationally in 2021 by MIK are currently held by Asian and European investors. Since announcing the trading offer, MIK has actively engaged with investors, conducting informational presentations. The deadline for submitting proposals to participate in the Exchange Offer is 16:00 on January 10, 2023, London time.

MIK stands out as one of the few Mongolian companies that successfully raised US$ 300 million in bonds in 2019 and US$ 250 million in bonds in 2021 without relying on government guarantees. In its ongoing endeavor to attract capital from the international market and meet investor demands, MIK regularly assesses its credit rating through international rating agencies such as Moody's and S&P and has its financial statements externally audited by "Ernst & Young" LLC.