Wednesday, November 28, 2012

Genghis Bonds: Mongolia Floats Paper Cheaper than Spain

Oh, East is East and West is West, and never the twain shall meet...

From MarketBeat:
Mongolia is the new Zambia.
Back in September, Zambia snagged the market’s attention when it managed to issue 10-year bonds at a price only slightly above Spain’s borrowing costs.

Wednesday, Mongolia is in the spotlight, as it sells dollar bonds, tentatively nicknamed Genghis Bonds, with borrowing costs that look set be cheaper than Spain’s. The central Asian state said it wants to sell its 10-year bond at a yield of up to 5.25%. For the five-year tranche, it is aiming at up to 4.25%.

For a comparison, outstanding 10-year bonds from Spain, the fourth-largest economy in the euro area, yield about 5.4%. The country paid a little more than that in a 10-year auction in October....MORE

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 How the heck did I miss Mongolia Energy Co. Ltd.?
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We've been on the Mongolia beat for a while now.*... 
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