DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report

Treasury Management Division 3/27/2017

News Highlights Mongolian Economic Main Indicators

Mongolia Indicators Unit 2016.02 2017.02 Year/chg %
World Bank project aims to help Mongolia diversify exports Money Supply (M2) bln.MNT 10,011.00 12,260.70 22%
(montsame.mn/eng) Inflation /Year to date/ % 1.20% 2.10% 75.0%
Ulaanbaatar /MONTSAME/ The Ministry of Finance of Mongolia and Equilibrated overall balance of budget bln.MNT (258.50) (211.70) -18%
World Bank launched an Export Development Project on March 24. The Trade balance mln.USD 261.20 334.20 27.9%
project is aimed to help small and medium-sized enterprises in non- Export /accumulated/ mln.USD 613.30 825.30 35%
minerals sectors to strengthen their export capabilities and boost their Import /accumulated/ mln.USD 352.10 491.00 39%
access to export markets. The project, to be implemented by the
Government of Mongolia in the next four and a half years, will support Policy rates
Mongolias economic diversification by providing those firms with Central Banks' interest rates Latest % Previous % Updated date
training, matching grants and access to export credit-insurance products. Policy rate of Mongolbank /BOM/ 14.00 15.00 12/19/2016
At the projects launch event, World Bank Country Manager for PBC base interest rate (China) 4.35 4.60 10/24/2015
Mongolia James Anderson said In an economy where exports are FED - Federal Funds Rate 1.00 0.75 3/14/2017
heavily dominated by mining commodities, export diversification will ECB - main refinancing rate 0.00 0.05 3/16/2016
boost productivity, overall entrepreneurship, and employement. This BOE official bank rate (England) 0.25 0.50 8/4/2016
project also complements other efforts by the World Bank to support
inclusive economic growth and livelihoods in Mongolia". Mongolian
Minister of Finance B.Choijilsuren remarked Through the project, Bank of Mongolia - Interest corridor
existing and future SME exporters in Mongolias non-minerals sector Indicators Latest % Previous % Updated date
will have broader and easier access to export credit insurance, learn Overnight repo 17.00 18.00 12/19/2016
practical knowhow, and receive financial support to improve their export Overnight deposit 13.00 14.00 12/19/2016
quality and competitiveness. The agricultural Reinsurance Joint Stock Repo 16.00 17.00 12/19/2016
Company, private insurance companies and other financial institutions
will learn to proide export-oriented financial products and services to the Money market interest rates
Mongolian SMEs. Indicators Rates % Daily chg % Yearly chg %
Draft of amendments to the 2017 state budget complete (theubpost.mn) Libor USD 2M 1.0228 0.27 24.81
Libor USD 3M 1.1513 -0.14 15.37
Minister of Finance B.Choijilsuren submitted a final draft of amendments Libor USD 6M 1.4271 -0.06 8.31
to the 2017 state budget to the Speaker of Parliament M.Enkhbold, Libor EUR 2M -0.3679 -0.20 -4.04
drafted for the implementation of an extended fund facility program from Libor EUR 3M -0.3557 0.00 -5.73
the International Monetary Fund. The authors of the amendments believe
they will help in implementing basic guidelines for 2017s socio- Official exchange rates - BOM Cross rates
economic development and include measures from a program to Official rates 3/27/17 9:18 Cross rates 3/27/17 9:18
overcome economic challenges approved by Parliament last year. The USD/MNT 2459.18 EUR/USD 1.0841
amendments focus on strengthening the state budget and the nations GBP/USD
EUR/MNT 2649.52 1.2512
financial environment, permanently reducing budget deficits, and
GBP/MNT 3070.04 USD/CHF 0.9884
strengthening fiscal discipline.Minister B.Choijilsuren pointed out that
CNY/MNT 356.72 USD/CNY 6.8837
the following measures are outlined in the amendments:
JPY/MNT 22.09 USD/JPY 110.46
1. increasing excise taxes on alcoholic beverages and imposing a tariff on
imported cigarettes
Mongolian Bonds information
2. increasing excise taxes on gasoline and diesel fuel within legal limits
3. raising excise taxes on vehicle imports, depending on engine Bonds Currency Yield % Last price Daily chg%
capacity...... Mongol 2018 USD 4.19 99.94 -0.076%
USA Mongol 2021 USD 6.46 115.54 0.068%
Trump says Republicans will probably work on tax reform now: Rtrs Mongol 2022 USD 6.29 94.46 -0.076%
The US economy is at a pretty good place right now says Fed's Dudley Mongol 2024-Khuraldai bond USD 6.99 109.53 0.099%
U.S. private sector expands at slowest pace for six months in March Mongol 2018-Dim sum bond CNY 8.49 98.82 0.218%
Europe DBM-Samurai 2023 JPY 0.97 103.50 -0.014%
Theresa May has decided to make control over immigration her priority for Brexit TDBM-2020 bond USD 6.90 107.40 -0.130%
A German Bank Accidentally Transferred $5.4 Billion to Four Other Banks MMC bond USD 20,037.23 64.85 -0.126%
Russian Central Bank lowers key rate to 9.75%; est. 10%
North Asia Commodity Trading Prices
Japans corporate services price index rose unexpectedly last month Commodities Latest price Daily chg% Yearly chg%
Bank of Japan March meeting summary: Easy policy to stay for a while Crude oil /WTI-New York/ $48.12 0.31 -10.42
Japanese manufacturers brace for possible U.S. import tax Gold Spot /ounce/ $1,253.73 0.82 9.26
Commodity market Copper /LME/ $5,804.00 -0.36 4.85
Gold gains in early Asia as political risk events eyed Iron ore /Beijing/ 590.00 0.00 31.11
Crude prices gain in Asia after hints on output cut extension Coal /Tianjin/ 1,520.00 0.00 -13.64

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

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DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report
Treasury Management Division 3/27/2017

Previous day's economic calendars Today's economic calendars

Event Period Forecast Actual Previous Event Time Period Estimated Previous

JN Leading Index CI Jan F -- 104.90 105.50 JN PPI Services YoY 19:50 Feb 0.50% 0.50%
JN Coincident Index Jan F -- 115.10 114.90 EC M3 Money Supply YoY 04:00 Feb 4.90% 4.90%
EC Markit Eurozone Manufacturing PMIMar P 55.30 56.20 55.40 US Dallas Fed Manf. Activity 10:30 Mar 22.00 24.50
EC Markit Eurozone Services PMI Mar P 55.30 56.50 55.50
EC Markit Eurozone Composite PMI Mar P 55.80 56.70 56.00
US Durable Goods Orders Feb P 1.40% 1.70% 2.00%
US Markit US Manufacturing PMI Mar P 54.80 53.40 54.20
US Markit US Composite PMI Mar P -- 53.20 54.10

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% 99.63 100.26 4.62 3.77 0.8 5-Jan-13 5-Jan-18
Mongol 2021 500 10.875% 114.98 115.86 6.57 6.34 4.0 6-Apr-16 6-Apr-21
Mongol 2022 1,000 5.125% 94.02 94.95 6.39 6.19 5.7 5-Dec-12 5-Dec-22
Mongol 2024-Khuraldai bond 600 8.750% 109.21 109.84 7.05 6.94 7.0 9-Mar-17 9-Mar-24
Mongol 2018 - Dim sum bond 1 billion CNY 7.500% 98.45 99.19 8.81 8.18 1.3 30-Jun-15 30-Jun-18
DBM - Samurai 2023 30 billion JPY 1.520% 103.33 103.66 0.99 0.94 6.8 16-Dec-13 25-Dec-23
TDBM - 2020 bond 500 9.375% 106.35 107.40 7.08 6.71 3.1 19-May-15 19-May-20
MMC 2017 600 8.875% 63.64 64.85 20572.64 19511.87 0.0 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 (%)
103 103.6
99.929 118 1.1%
100 103.5
94.358 115 103.4
1.1%
97

94 112 103.3 1.0%

/Year to date/
91 109 103.2 1.0%
109.525 106 1.0%
88 103.1
/Year to datet/ 0.9%
85 103 103.0

82 100 102.9 0.9%

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

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DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report
Treasury Management Division 3/27/2017

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 1/31/2017 United States
UBS 18,240 3.65% 7,000.00 11/30/2016 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
T ROWE PRICE GROUP INC 7,543 1.51% 0.00 3/31/2015 United States
LAZARD LTD 6,656 1.33% 6,616.00 12/31/2016 Bermuda
NORDEA BANK AB 6,095 1.22% (650.00) 1/31/2017 Sweden
SCHRODERS PLC 5,895 1.18% (435.00) 6/30/2016 United Kingdom
BLACKROCK 4,695 0.94% 0.00 11/30/2016 United States
AXA 4,400 0.88% 4,400.00 6/30/2016 France
PRUDENTIAL PLC 4,245 0.85% 500.00 11/30/2016 United Kingdom
HSBC 4,200 0.84% 0.00 11/30/2016 United Kingdom
SCHRODER INV MGMT TAIWAN LTD 3,785 0.76% 0.00 12/30/2016 Taiwan

Bond holders of Mongol 2022

Names Position % of position Latest change Fiing date Country
BLACKROCK 110,412 11.04% 6626.00 3/24/2017 United States
ALLIANCE BERNSTEIN 35,283 3.53% 1116.00 1/31/2017 United States
PRUDENTIAL FINANCIAL INC 30,120 3.01% 1305.00 1/31/2017 United States
GOLDMAN SACHS GROUP INC 28,741 2.87% 1982.00 1/31/2017 United States
FMR LLC 25,620 2.56% 200.00 1/31/2017 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
SCHRODERS PLC 17,800 1.78% (5310.00) 12/31/2016 United Kingdom
DANSKE BANK A/S 15,222 1.52% 0.00 2/28/2017 Denmark
UBS 10,791 1.08% 1790.00 2/28/2017 Switzerland
PRUDENTIAL PLC 10,500 1.05% 0.00 11/30/2016 United Kingdom
T ROWE PRICE GROUP INC 10,496 1.05% 0.00 3/31/2015 United States
LAZARD LTD 9,400 0.94% 3105.00 1/31/2017 Bermuda

Bond holders of Mongol 2024

Names Position % of position Latest change Fiing date Country
UBS 300 0.05% 0.00 3/22/2017 Switzerland

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