Mongolian Mining Corporation to issue 350 million USD bonds with 8.44 percent yield

Following a record earnings report, Mongolian Mining Corporation, listed on the Hong Kong Stock Exchange, is set to issue 350 million USD in bonds maturing in 2030. The bonds will offer a yield of 8.44 percent, slightly lower than the 8.8 percent forecast by Bloomberg analysts, indicating strong investor demand. The bond price is currently around 98.4 USD, with the expected yield rising to 8.9 percent. This strong interest reflects positive market sentiment toward the company’s financial stability and growth prospects.

The company plans to use the proceeds to repurchase its 12.5 percent coupon bonds maturing in 2026. However, the future of the Ukhaa Khudag coal license remains uncertain, and should the license be revoked, Mongolian Mining Corporation has the option to repurchase the new bonds from investors at a higher price than initially offered. Investors are closely monitoring the potential risks associated with this key license.

Credit rating agencies Fitch Ratings and Moody’s have assigned the company a B3 and B+ rating, respectively, with a Stable outlook. The bond issuance is seen as part of the company's strategy to reduce debt and manage its financial position more efficiently.