Mongolia $1.5 Billion Bond Deal Draws Strong Demand

Mongolia sold $1.5 billion in debt to strong investor interest.

Institutional investors sold more than 80% of the two-part deal. The $500 million, five-year issue sold at its launch price of 4.125% yield. The 10-year part, of $1 billion size, sold at 5.125%, according to sources familiar with the deal.

The demand for the bond comes despite Mongolia's spotty fiscal past. The country has been rescued five times in 22 years by the International Monetary Fund, and its bond offering is an amount equal to nearly one-fifth of the size of its economy. The recent growth in the country's economy, however, compensates for these concerns, investors said.

The order book for the five-year issue totaled $6 billion on 310 orders, while that of the 10-year notes was $9.3 billion on 370 orders.

Write to Prabha Natarajan at prabha.natarajan@dowjones.com
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