 Business: Trade and Development Bank Sets Bond Sale; Xanadu Mines to Raise US $150 Million via Private Placement and IPO; Asian Development Bank and MSE to Jointly Develop Securities Markets; South Gobi Energy Resources Coal Mine Opened; Western Prospector Group Reports Large Coal Deposits; Tavan Bogd Motors Becomes Official Volkswagen Distributor (Click here for Business section).
Economy: Huge Increase in Vehicles Since 2000; New Central Library Funded By Kuwait Foundation; Road Strengthens Connection Between Gobi and UB (Click here for Economy section).
Politics: Campaigning for 2008 Parliamentary Elections; China’s Vice President Visits Mongolia; South African Ambassador Meets Media (Click here for Politics section).
BUSINESS
TRADE AND DEVELOPMENT
BANK SETS BOND SALE
The Trade and Development Bank
of Mongolia (TDBM) set guidance for a sale of around $100 million
in three-year bonds at a yield of 11.5-11.75 percent, a source with
direct knowledge of the deal said on Thursday. ING is the sole
lead manager for the transaction. The lender made its debut bond
sale in January 2007 after raising $75 million in three-year bonds that
were priced at a yield of 8.75 percent. TDBM's debt is rated Ba2
by Moody's, or two notches into high-yield.
XANADU MINES
TO RAISE US $150 MILLION VIA PRIVATE PLACEMENT AND IPO
Xanadu Mines said it plans
to raise US $100 million in a Hong Kong initial public offering early
next year to bankroll its coal and copper projects in Mongolia.
“The company is in talks with four investment banks and will hire
one to manage the listing”, said company chairman Brian Thornton,
adding that Citigroup is most likely to be in the final list.
“If the listing plan is approved by the Hong Kong Stock Exchange,
and gets a waiver of income-earnings requirements, the IPO may begin
in March 2009”, he said. Prior to the offering, it plans to
launch a private placement within the next four weeks to raise US $50
million by selling shares to institutional investors, according to Thornton.
“Xanadu chose to list on the Hong Kong Stock Exchange as it is near
one of its potential markets - China, and investors were willing to
give a higher valuation for resources stocks”, Thornton said.
After years of development, the total investment for its Mongolia-based
Khar Tarvaga coal mine, which has estimated coal reserves of 327 million
tons, will hit around US$100 million.
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