DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report

Treasury Management Division 4/26/2017

News Highlights Mongolian Economic Main Indicators

Mongolia Indicators Unit 2016.03 2017.03 Year/chg %
Cabinet approves 100 million USD ADB project to reform the banking Money Supply (M2) bln.MNT 10,112.40 12,177.70 20%
system (theubpost.mn) Inflation /Year to date/ % 1.20% 2.10% 75.0%
Cabinet has reached an agreement with Asian Development Bank (ADB) Equilibrated overall bal of budget bln.MNT (615.70) (255.10) -59%
to launch a 100 million USD project to implement the systemic reform of Trade balance mln.USD 359.90 523.70 45.5%
the banking system. The project is called Reviving the Banking Sector, Export /accumulated/ mln.USD 958.90 1,299.90 36%
Enhancing Financial Stability. The project is being financed with a 15- Import /accumulated/ mln.USD 599.10 776.20 30%
year loan from the ADB, with no payment required from the Mongolian
government for the first three years. There will be 12 measures undertaken Policy rates
as part of the project, including the establishment of an asset management Central Banks interest rates Latest % Previous % Updated date
company to address the increasing amount of non-performing loans in the Policy rate of Mongolbank /BOM/14.00 15.00 12/19/2016
sector. Laws will be amended in order to ensure financial stability in the PBC base interest rate (China) 4.35 4.60 10/24/2015
sector, and regulation and governance of commercial banks will be FED - Federal Funds Rate 1.00 0.75 3/14/2017
strengthened.The amount of non-performing loans in the Mongolian ECB - main refinancing rate 0.00 0.05 3/16/2016
banking system has significantly increased. As of 2016, the amount of BOE official bank rate (England) 0.25 0.50 8/4/2016
non-performing loans had reached 1.7 trillion MNT, or 14.2 percent of all
loans. The volume of non-performing loans in 2016 was the highest it has
been in the past six years. Bank of Mongolia - Interest corridor
Indicators Latest % Previous % Updated date
Aviation industry revenue reaches 56 billion MNT, 152,200 customers Overnight repo 17.00 18.00 12/19/2016
served in Q117 (theubpost.mn) Overnight deposit 13.00 14.00 12/19/2016
The revenue of the aviation industry reached 56.75 billion MNT, a nine Repo 16.00 17.00 12/19/2016
percent increase compared to the previous year, and the industrys number
of customers served rose to 152,200 in the first quarter of 2017, reported Money market interest rates
the National Statistics Office (NSO). The increase in revenue is linked to Indicators Rates % Daily chg % Yearly chg %
a 53.4 percent increase in the number of domestic travelers. In the first Libor USD 2M 1.0461 0.59 27.66
quarter of 2017, 64,600 passengers flew on domestic flights. The total Libor USD 3M 1.1665 0.89 16.90
number of passengers in Q117 was 152,200. International travel only Libor USD 6M 1.4207 1.33 7.82
increased by 2.2 percent, totaling 87,500 passengers. As highlighted by Libor EUR 2M -0.3721 0.00 -5.25
the NSO, passenger baggage has been steadily declining, as evidenced by
Libor EUR 3M -0.3586 0.99 -6.58
an annual amount of 635.8 tons of cargo transported. The volume of air
shipments has been increasing, with an 18.2 percent increase to 70.3 tons
Official exchange rates - BOM Cross rates
compared to last year. NSO officials said that the volume of air shipments
Official rates Cross rates 4/26/17 9:32
has risen each year.
USD/MNT 2423.16 EUR/USD 1.0939
MSE MEETS WITH FTSE RUSSELL REGARDING RETENTION EUR/MNT 2637.73 GBP/USD 1.2840
OF MONGOLIA ON FRONTIER MARKET WATCH LIST GBP/MNT 3102.49 USD/CHF 0.9928
(montsame.mn) CNY/MNT 351.88 USD/CNY 6.8847
JPY/MNT 21.97 USD/JPY 111.27
Mongolian Mining to Restructure Debt With 1.03b Shares Issue
(bloomberg) Mongolian Bonds information
Bonds Currency Yield % Last price Daily chg%
Mongol 2018 USD 4.12 100.00 0.04%
USA Mongol 2021 USD 6.16 116.21 0.05%
Trump Is Said to Abandon Contentious Border Tax on Imports Mongol 2022 USD 6.12 95.42 0.06%
Consumer confidence slips; new home sales hit eight-month high Mongol 2024-Khuraldai bond
USD 6.77 110.79 0.17%
US April Consumer Confidence Declines To 120.3, Second-Highest Since 2001 Mongol 2018-Dim sum bond
CNY 8.10 99.32 0.00%
Europe DBM-Samurai 2023 JPY 0.92 103.78 -0.02%
Russian hackers reportedly target Emmanuel Macron TDBM-2020 bond USD 6.54 108.14 0.26%
Greece, creditors resuming talks in Athens, seek swift deal MMC bond USD 13.78 #N/A N/A 0.00%
Canada's options limited as it faces prospect of U.S. trade war
North Asia Commodity Trading Prices
China's unemployment rate falls below 4 percent at end of first quarter Commodities Latest price Daily chg% Yearly chg%
Asian stocks extend gains on bullish Wall Street, euro steady Crude oil /WTI-New York/ $49.32 -0.48 -8.19
Gold Spot /ounce/ $1,263.34 -0.06 10.10
Commodity market Copper /LME/ $5,706.00 0.90 3.08
Iron Ore Seen Slumping for Years After Hitting February Peak Iron ore /Beijing/ 510.00 0.00 13.33
Crude oil inventories unexpectedly rose 900,000 barrels at the end of last week, the Coal /Tianjin/ 1,660.00 0.00 -5.68
American Petroleum Institute (API) said Tuesday

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

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DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report
Treasury Management Division 4/26/2017

Previous day's economic calendars Today's economic calendars

Event Period Forecast Actual Previous Event Time Period Estimated Previous

FHFA House Price Index MoM Feb 0.40% 0.80% 0.00% All Industry Activity Index MoM
04/26/2017 00:30 Feb 0.60% 0.10%
New Home Sales Mar 584k 621k 592k Small Business Confidence 04/26/2017 01:00 Apr 49.40 50.50
New Home Sales MoM Mar -1.40% 5.80% 6.10% Machine Tool Orders YoY 04/26/2017 02:00 Mar F -- 22.60%
Richmond Fed Manufact. Index Apr 16.00 2000.00% 22.00 MBA Mortgage Applications 04/26/2017 07:00 21-Apr -- -1.80%
Revisions: Retail Sales 04/26/2017 10:00 0-Jan 0.00% 0.00%
Industrial Profits YoY 04/26/2017 21:30 Mar -- 2.30%

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% 99.77 100.23 4.46 3.78 0.7 5-Jan-13 5-Jan-18
Mongol 2021 500 10.875% 115.89 116.60 6.26 6.07 3.9 6-Apr-16 6-Apr-21
Mongol 2022 1,000 5.125% 94.99 95.69 6.20 6.04 5.6 5-Dec-12 5-Dec-22
Mongol 2024-Khuraldai bond 600 8.750% 110.39 111.03 6.83 6.72 6.9 9-Mar-17 9-Mar-24
Mongol 2018 - Dim sum bond 1 billion CNY 7.500% 99.03 99.61 8.37 7.84 1.2 30-Jun-15 30-Jun-18
DBM - Samurai 2023 30 billion JPY 1.520% 103.62 103.94 0.94 0.89 6.7 16-Dec-13 25-Dec-23
TDBM - 2020 bond 500 9.375% 107.35 108.14 6.68 6.40 3.1 19-May-15 19-May-20
MMC 2017 600 8.875% 63.83 64.99 13.90 13.66 -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%
103.9 103.777
100.050 1.0%
115
97 95.156 103.7 1.0%
112 1.0%
94 103.5 1.0%
/Year to date/ 109 0.9%
91
110.644 103.3
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,

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DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report
Treasury Management Division 4/26/2017

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 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% 2,664.00 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% (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 94,201 9.42% (17411.00) 4/21/2017 United States
ALLIANCE BERNSTEIN 36,490 3.65% 2323.00 2/28/2017 United States
PRUDENTIAL FINANCIAL INC 30,120 3.01% 1305.00 3/31/2017 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 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 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
FRANKLIN RESOURCES 9,400 0.94% (12100.00) 3/31/2017 United States
LAZARD LTD 8,955 0.90% (445.00) 3/31/2017 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
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
LANDESBANK BERLIN INVESTMENT GMB 1,500 0.25% 3,301.00 3/31/2017 Germany
AMERIPRISE FIN GRP 700 0.12% 1,500.00 3/31/2017 United States
CREDIT SUISSE GROUP AG 600 0.10% 700.00 3/31/2017 Switzerland
UBS 300 0.10% 600.00 4/20/2017 Switzerland
NATIONWIDE FUND ADVISORS 500 0.08% 300.00 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