DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report

Treasury Management Division 4/5/2017

News Highlights Mongolian Economic Main Indicators

Mongolia Indicators Unit 2016.02 2017.02 Year/chg %
Central bank allotting MNT 25-35 billion for housing mortgage Money Supply (M2) bln.MNT 10,011.00 12,260.70 22%
program (montsame.mn) Inflation /Year to date/ % 1.20% 2.10% 75.0%
Equilibrated overall balance of
Ulaanbaatar /MONTSAME/ Following the revised regulation of financing bln.MNT (258.50) (211.70) -18%
budget
of housing mortgage program, the Bank of Mongolia is allocating Trade balance mln.USD 261.20 334.20 27.9%
mortgage loan funding to commercial banks every month. The public has Export /accumulated/ mln.USD 613.30 825.30 35%
issued complaints to the central bank concerning the rumors which Import /accumulated/ mln.USD 352.10 491.00 39%
implied the Bank of Mongolia has discontinued funding for the 8 percent
loan. In order to continue mortgage funding during today's economic Policy rates
difficulties, the Bank of Mongolia is allocating around MNT 25-35 billion Central Banks' interest rates Latest % Previous % Updated date
funds to commercial banks for a housing mortgage loan every month. Policy rate of Mongolbank /BOM/14.00 15.00 12/19/2016
Therefore, the Bank of Mongolia requested commercial banks to prevent PBC base interest rate (China) 4.35 4.60 10/24/2015
from false rumors which could affect public confidence towards the FED - Federal Funds Rate 1.00 0.75 3/14/2017
policies implemented by the Government and Bank of Mongolia by ECB - main refinancing rate 0.00 0.05 3/16/2016
conveying genuine information to the general public. The regulation of BOE official bank rate (England) 0.25 0.50 8/4/2016
financing housing mortgage was approved on October 25, 2016,
according to which, repayments of mortgage loan are granted by the
central bank every month. During the period from October 2016 to Bank of Mongolia - Interest corridor
February 2017, the Bank of Mongolia has funded MNT 142.3 billion in Indicators Latest % Previous % Updated date
total within the 8 percent mortgage loan program. Overnight repo 17.00 18.00 12/19/2016
Overnight deposit 13.00 14.00 12/19/2016
DP working group established to assess budget amendment bill Repo 16.00 17.00 12/19/2016
(montsame.mn)
Ulaanbaatar /MONTSAME/ Today, DP group in parliament announced Money market interest rates
that it has established a working group to assess and make conclusion Indicators Rates % Daily chg % Yearly chg %
regarding a bill on amendments to 2017 state budget. The bill is scheduled Libor USD 2M 1.0256 0.05 25.15
to be discussed at the parliamentary spring session, to be opened Libor USD 3M 1.1498 0.02 15.23
tomorrow and DP group has an opposing position to increase budget Libor USD 6M 1.4263 0.22 8.24
expenditure and some tax rates. Libor EUR 2M -0.3729 -0.97 -5.46
- The International Monetary Fund has made conclusion that current Libor EUR 3M -0.3607 -0.80 -7.22
difficulties were caused by price drop of mining products, which is main
column of the economy and foreign investment fall. Current economic
Official exchange rates - BOM Cross rates
condition should be reviewed again and income from mining should be
Official rates Cross rates 4/5/17 9:49
calculated realistically. Price of mining products is increasing and the
USD/MNT 2441.55 EUR/USD 1.0680
situation turns positively in favor of Mongolian economy.
EUR/MNT 2600.37 GBP/USD 1.2446
Speakers talk activation of Mongolia-Sweden ties (montsame.mn) GBP/MNT 3034.24 USD/CHF 1.0017
M.Enkhbold, Chairman of the State Great Khural (Parliament), met with CNY/MNT 354.51 USD/CNY 6.8872
his Swedish counterpart, Mr Urban Ahlin in Dhaka, Bangladesh.Mr JPY/MNT 22.10 USD/JPY 110.78
M.Enkhbold suggested that the two countries have possibilities to
implement effective projects together, mentioning that Mr Enkhbold Mongolian Bonds information
himself was one of the 200 Mongolian public servants who received short- Bonds Currency Yield % Last price Daily chg%
term training in Sweden, and to activate cooperation in trade and Mongol 2018 USD 4.21 99.94 -0.040%
business.....
USA Mongol 2021 USD 6.43 115.46 0.023%
U.S. trade deficit falls as exports hit two-year high Mongol 2022 USD 6.26 94.63 -0.040%
Apple aims for more control, less cost as it accelerates in chip design Mongol 2024-Khuraldai bond
USD 6.98 109.55 0.069%
US factory orders up 1 percent in February Mongol 2018-Dim sum bond
CNY 8.40 98.95 0.000%
Europe DBM-Samurai 2023 JPY 0.96 103.56 0.082%
UK food prices rise at fastest pace in three years as inflation returns TDBM-2020 bond USD 6.84 107.41 -0.019%
Bank of England warns banks about risky lending after borrowing surge MMC bond USD 13.84 #N/A N/A 0.314%
Weaker housing activity growth weighs on UK construction sector
North Asia Commodity Trading Prices
Moody's places South Africa's Baa2 ratings on review for downgrade Commodities Latest price Daily chg% Yearly chg%
Abe Advisor Says It's Time To Pull The Plug On QE Crude oil /WTI-New York/ $51.14 0.22 -4.80
North Korea fires missile into sea ahead of Trump-Xi summit Gold Spot /ounce/ $1,256.19 -0.01 9.47
Commodity market Copper /LME/ $5,779.50 0.46 4.41
Crude up in Asia as API reports larger than seen draw, Nkorea ... Iron ore /Beijing/ 590.00 0.00 31.11
U.S. coal companies ask Trump to stick with Paris climate deal Coal /Tianjin/ 1,570.00 0.00 -10.80
Oil rises, near one-month high; U.S. crude stocks seen down

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

1 montsame.mn, news.mn, gogo.mn, ikon.mn
DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report
Treasury Management Division 4/5/2017

Previous day's economic calendars Today's economic calendars

Event Period Forecast Actual Previous Event Time Period Estimated Previous

EC Retail Sales MoM Feb 0.50% 0.70% -0.10% EC Markit Eurozone Services PMI 04:00 Mar F 56.50 56.50
EC Retail Sales YoY Feb 1.00% 1.80% 1.20% EC Markit Eurozone Composite PMI04:00 Mar F 56.70 56.70
US Trade Balance Feb -$44.6b -$43.6b -$48.5b US MBA Mortgage Applications 07:00 31-Mar -- -0.80%
US Factory Orders Feb 1.00% 1.00% 1.20% US ADP Employment Change 08:15 Mar 185k 298k
US Durable Goods Orders Feb F 1.70% 1.80% 1.70% US Markit US Services PMI 09:45 Mar F 53.10 52.90
JN Nikkei Japan PMI Services Mar -- 52.90 51.30 US Markit US Composite PMI 09:45 Mar F -- 53.20
JN Nikkei Japan PMI Composite Mar -- 52.90 52.20 CH Caixin China PMI Composite 21:45 Mar -- 52.60
CH Caixin China PMI Services 21:45 Mar -- 52.60

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% 99.67 100.20 4.58 3.84 0.8 5-Jan-13 5-Jan-18
Mongol 2021 500 10.875% 115.06 115.86 6.53 6.32 4.0 6-Apr-16 6-Apr-21
Mongol 2022 1,000 5.125% 94.25 95.00 6.35 6.18 5.7 5-Dec-12 5-Dec-22
Mongol 2024-Khuraldai bond 600 8.750% 109.29 109.81 7.03 6.94 6.9 9-Mar-17 9-Mar-24
Mongol 2018 - Dim sum bond 1 billion CNY 7.500% 98.61 99.29 8.70 8.10 1.2 30-Jun-15 30-Jun-18
DBM - Samurai 2023 30 billion JPY 1.520% 103.40 103.73 0.98 0.93 6.7 16-Dec-13 25-Dec-23
TDBM - 2020 bond 500 9.375% 106.56 107.41 6.99 6.70 3.1 19-May-15 19-May-20
MMC 2017 600 8.875% 63.61 64.61 13.95 13.74 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
99.933 118 1.1%
100 103.5
94.418 115 103.4
1.1%
97 103.481
94 112 103.3 1.0%
/Year to date/
91 109 103.2 1.0%
109.537 106 1.0%
88 103.1
/Year to datet/ 0.9%
85 103 103.0
0.969%
82 100 102.9 0.9%

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

2 montsame.mn, news.mn, gogo.mn, ikon.mn
DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report
Treasury Management Division 4/5/2017

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 2/28/2017 United States
UBS 18,240 3.65% 0.00 12/30/2016 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
LAZARD LTD 9,320 1.86% 3,730.00 12/31/2016 Bermuda
T ROWE PRICE GROUP INC 7,543 1.51% 0.00 3/31/2015 United States
NORDEA BANK AB 5,895 1.18% (200.00) 2/28/2017 Sweden
SCHRODERS PLC 5,360 1.07% (535.00) 12/30/2016 United Kingdom
BLACKROCK 4,695 0.94% 0.00 12/31/2016 United States
AXA 4,400 0.88% 4,400.00 6/30/2016 France
PRUDENTIAL PLC 4,000 0.80% (245.00) 2/28/2017 United Kingdom
SCHRODER INV MGMT TAIWAN LTD 3,766 0.75% (19.00) 2/28/2017 Taiwan
MEDIOLANUM INTERNATIONAL FUNDS 3,134 0.63% 0.00 6/30/2016 Ireland

Bond holders of Mongol 2022

Names Position % of position Latest change Fiing date Country
BLACKROCK 110,912 11.09% (3674.00) 4/3/2017 United States
ALLIANCE BERNSTEIN 35,283 3.53% 1116.00 2/28/2017 United States
PRUDENTIAL FINANCIAL INC 29,920 2.99% 1105.00 2/28/2017 United States
FMR LLC 25,620 2.56% 0.00 2/28/2017 United States
GOLDMAN SACHS GROUP INC 24,114 2.41% (2645.00) 2/28/2017 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
DANSKE BANK A/S 15,222 1.52% 0.00 2/28/2017 Denmark
PRUDENTIAL PLC 10,500 1.05% 0.00 2/28/2017 United Kingdom
T ROWE PRICE GROUP INC 10,496 1.05% 0.00 3/31/2015 United States
UBS 10,021 1.00% (430.00) 2/28/2017 Switzerland
LAZARD LTD 9,400 0.94% 2025.00 2/28/2017 Bermuda
NN GROUP NV 7,420 0.74% 0.00 3/31/2016 Netherlands

Bond holders of Mongol 2024

Names Position % of position Latest change Fiing date Country
LANDESBANK BERLIN INVESTMENT GMB 1,500 0.25% 1,500.00 3/31/2017 Germany

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