Mongolian Railway SOJSC raised 300 billion togrog through the MTZ bond. This marks the first financial instrument in Mongolia’s history issued by a state-owned enterprise. It is also the first such bond secured by the company’s own assets. The issuance will finance the Bagakhangai–Khushig Valley–Emeelt railway project.
The issuer offered the MTZ bond with a one-year maturity at 17 percent annual interest. Tenger Capital Securities Company organized the issuance. Therefore this transaction expands Mongolia’s domestic capital market and opens market-based infrastructure financing.
Tenger Capital’s management met Minister of Road and Transport Delgersaikhan Borkhuu and CEO Batchuluun O. after the issuance. Both sides expressed appreciation for their cooperation. The financing will flow directly to the railway construction project.
The company plans to repurchase the MTZ bond ahead of maturity. It will attract long-term, low-interest investment from international banks. This bond serves as bridge financing for immediate construction. Successful repayment could transform Mongolia’s infrastructure finance landscape.
