DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report

Treasury Management Division 4/17/2017

News Highlights Mongolian Economic Main Indicators

Mongolia Indicators Unit 2016.03 2017.03 Year/chg %
Mongolia Parliament Passes Laws Needed to Get IMF Bailout Money Supply (M2) bln.MNT 10,112.40 12,177.70 20%
(bloombergtv.mn) Inflation /Year to date/ % 1.20% 2.10% 75.0%
(Bloomberg) -- Mongolias parliament approved a package of bills that Equilibrated overall bal of budget bln.MNT (615.70) (255.10) -59%
includes increasing tax rates and higher payments into social security Trade balance mln.USD 359.90 523.70 45.5%
system, according to a statement published on the Parliament website. Export /accumulated/ mln.USD 958.90 1,299.90 36%
Passage of bills a prerequisite for IMF-led bailout, according to research Import /accumulated/ mln.USD 599.10 776.20 30%
note from Dale Choi, founder of Altan Bumba Financial Group
Bills include seven taxes including increase in income taxes, increase in Policy rates
payments into social insurance, increase in taxes on gasoline, cars, Central Banks interest rates Latest % Previous % Updated date
tobacco and alcohol; bills also include increase of the retirement age Policy rate of Mongolbank /BOM/14.00 15.00 12/19/2016
Passage of bills opens the door to the IMF-led support package, says Choi PBC base interest rate (China) 4.35 4.60 10/24/2015
Package will be worth $3.3b and include international financial FED - Federal Funds Rate 1.00 0.75 3/14/2017
institutions and money from other nations ECB - main refinancing rate 0.00 0.05 3/16/2016
SEVEN TYPES OF TAX RATES TO BE RAISED FOLLOWING BOE official bank rate (England) 0.25 0.50 8/4/2016
BUDGET AMENDMENTS (montsame.mn)
Ulaanbaatar /MONTSAME/ Amendments to the 2017 State Budget, Bank of Mongolia - Interest corridor
which were approved by the Parliament yesterday, April 13, laid out to Indicators Latest % Previous % Updated date
raise seven types of taxes, as the Government agreed with the Overnight repo 17.00 18.00 12/19/2016
International Monetary Fund in the scope of a three-year Extended Fund Overnight deposit 13.00 14.00 12/19/2016
Facility. Tax rate increase of four types of taxes will come into effect Repo 16.00 17.00 12/19/2016
starting May 01. Those include individual income tax, tax on interest of
bank savings, customs tax on imported cigarettes and excise tax on
Money market interest rates
passenger cars. Individual income tax will have tax brackets and five per
Indicators Rates % Daily chg % Yearly chg %
cent of tax will be imposed on a monthly income of more than MNT1.5
Libor USD 2M 1.0350 0.16 26.31
million. Five per cent tax will be levied on interest of bank savings newly,
Libor USD 3M 1.1584 0.00 16.09
bringing the planned effective date of January 1, 2018 closer. Customs
duty on imported cigarettes and tobacco will be 30 per cent. Excise tax on Libor USD 6M 1.4032 -0.51 6.49
passenger car will be increased depending on its date of manufacturing Libor EUR 2M -0.3750 -0.38 -6.06
and cylindrical capacity. However, excise tax on hybrid, electric and Libor EUR 3M -0.3579 0.79 -6.37
gasoline vehicles will be eased by 50 per cent, while currently they are
fully exempted from the tax. Official exchange rates - BOM Cross rates
Mongolia request renew medical cooperation plan with China Official rates Cross rates 4/17/17 8:32
(news.mn) USD/MNT 2406.80 EUR/USD 1.0609
Mongolian Health Minister A.Tsogtsetseg has held a meeting with Xing EUR/MNT 2556.14 GBP/USD 1.2530
Haiming, Ambassador of China to Ulaanbaatar in order to discuss GBP/MNT 3011.51 USD/CHF 1.0052
continued cooperation in the medical sector. The two neighbours have CNY/MNT 349.50 USD/CNY 6.8854
already been working closely for many years in preventing contagious JPY/MNT 22.09 USD/JPY 108.27
diseases, primary health care, post-natal and paediatric health, traditional
medicines and medical training. Mongolian Bonds information
Bonds Currency Yield % Last price Daily chg%
Mongol 2018 USD 4.12 99.98 0.003%
USA Mongol 2021 USD 6.32 115.86 -0.080%
The US dollar suffered broadly last week due to geopolitical risks Mongol 2022 USD 6.26 94.84 0.003%
Falling Inflation, Retail Sales Bolster Fed's Go-Slow Approach Mongol 2024-Khuraldai bond
USD 6.88 110.08 0.114%
China fears North Korea-US conflict 'at any moment' Mongol 2018-Dim sum bond
CNY 8.27 99.12 0.000%
Europe DBM-Samurai 2023 JPY 0.90 103.88 0.149%
The euro was among the poorest performers among the major currencies last week TDBM-2020 bond USD 6.71 107.67 -0.289%
Turkey's Erdogan declares referendum victory MMC bond USD 13.78 #N/A N/A -0.051%
Ukraine to launch big blockhain deal with tech firm Bitfury
North Asia Commodity Trading Prices
North Korea Provokes Trump With Missile Test Commodities Latest price Daily chg% Yearly chg%
The Japanese yen was the strongest currency in the world last week, gaining nearly Crude oil /WTI-New York/ $52.98 -0.38 -1.38
2.3% against the dollar. Gold Spot /ounce/ $1,295.41 0.76 12.89
Commodity market Copper /LME/ $5,692.00 1.14 2.83
Crude prices point weaker in Asia with China GDP, Korea tension in focus Iron ore /Beijing/ 580.00 0.00 28.89
Gold prices higher in Asia with Korean tensions, China GDP eyed Coal /Tianjin/ 1,660.00 0.00 -5.68
Bets on Oil Rise Advance on Signs OPEC Cuts Will Outdo U.S. Boom

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

1 montsame.mn, news.mn, gogo.mn, ikon.mn
DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report
Treasury Management Division 4/17/2017

Previous day's economic calendars Today's economic calendars

Event Period Forecast Actual Previous Event Time Period Estimated Previous

JPY Industrial Production (YoY) Feb F - 4.70% 4.80% CNY Retail Sales (YoY) 2:00 Mar 9.70% 10.90%
USD Consumer Price Index (MoM) Mar 0.00% -0.30% 0.10% CNY Retail Sales YTD (YoY) 2:00 Mar 9.60% 9.50%
Mar
USD Consumer Price Index Ex Food & Energy (MoM)0.20% -0.10% 0.20% CNY Fixed Assets Ex Rural YTD (YoY)
2:00 Mar 8.80% 8.90%
USD Consumer Price Index (YoY) Mar 2.60% 2.40% 2.70% CNY Industrial Production (YoY) 2:00 Mar 6.30% 6.00%
USD Consumer Price Index Ex Food & Energy (YoY)2.30%
Mar 2.00% 2.20% CNY Industrial Production YTD (YoY)
2:00 Mar 6.30% 6.30%
Mar
USD Real Avg Weekly Earnings (YoY) 0.00% 0.00% -0.60% CNY Gross Domestic Product (YoY) 2:00 1Q 0.07 0.07
USD Real Avg Hourly Earning (YoY)Mar 0.00% 0.30% 0.00% CNY Gross Domestic Product SA (QoQ)
2:00 1Q 1.50% 1.70%
USD Advance Retail Sales Mar -0.20% -0.20% -0.30% CNY Gross Domestic Product YTD (YoY)
2:00 1Q 6.80% 6.70%
USD Retail Sales Less Autos Mar 0.10% 0.00% 0.20% JPY BOJ Kuroda speaks to Trust Companies
6:15 Assoc. - - -

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% 99.75 100.25 4.48 3.76 0.7 5-Jan-13 5-Jan-18
Mongol 2021 500 10.875% 115.30 116.23 6.44 6.19 4.0 6-Apr-16 6-Apr-21
Mongol 2022 1,000 5.125% 94.25 95.13 6.36 6.16 5.6 5-Dec-12 5-Dec-22
Mongol 2024-Khuraldai bond 600 8.750% 109.80 110.37 6.93 6.84 6.9 9-Mar-17 9-Mar-24
Mongol 2018 - Dim sum bond 1 billion CNY 7.500% 98.82 99.42 8.54 8.00 1.2 30-Jun-15 30-Jun-18
DBM - Samurai 2023 30 billion JPY 1.520% 103.72 104.05 0.93 0.88 6.7 16-Dec-13 25-Dec-23
TDBM - 2020 bond 500 9.375% 106.92 107.67 6.84 6.58 3.1 19-May-15 19-May-20
MMC 2017 600 8.875% 63.88 64.94 13.89 13.67 -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 (%)
103 104.1 1.1%
100.000 118 1.1%
100 103.9
1.0%
94.688 115
97 1.0%
103.7
94 112 103.481 1.0%
103.5 1.0%
91 109
0.9%
110.106 103.3
88 106 0.9%
103.1 /Year to date/ 0.9%
85 103 0.969%
0.8%
82 100 102.9 0.8%

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

2 montsame.mn, news.mn, gogo.mn, ikon.mn
DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report
Treasury Management Division 4/17/2017

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
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
DEUTSCHE BANK AG 3,000 0.60% 0.00 12/31/2014 Germany

Bond holders of Mongol 2022

Names Position % of position Latest change Fiing date Country
BLACKROCK 111,612 11.16% (3674.00) 4/14/2017 United States
ALLIANCE BERNSTEIN 36,490 3.65% 2323.00 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 9,681 0.97% (1110.00) 3/31/2017 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
SYDINVEST INTERNATIONAL 3,301 0.55% 3,642.00 3/31/2017 Denmark
LANDESBANK BERLIN INVESTMENT GMB 1,500 0.25% 3,301.00 3/31/2017 Germany
UBS 300 0.10% 1,500.00 4/10/2017 Switzerland
CREDIT SUISSE GROUP AG 600 0.10% 300.00 3/31/2017 Switzerland
BLACKROCK - 0.05% 600.00 4/11/2017 United States
PFA KAPITALFORENING 200 0.03% 0.00 3/31/2017 Denmark
INVESTERINGSFORENINGEN 100 0.02% 200.00 3/31/2017 Denmark

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