DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report

Treasury Management Division 4/28/2017

News Highlights Mongolian Economic Main Indicators

Mongolia Indicators Unit 2016.03 2017.03 Year/chg %
Meet the Mongolian lawyer working at German Ministry of Finance Money Supply (M2) bln.MNT 10,112.40 12,177.70 20%
(theubpost.mn) Inflation /Year to date/ % 1.20% 2.10% 75.0%
Mongolian lawyer is serving as the youngest advisor to Germanys Equilibrated overall bal of budget bln.MNT (615.70) (255.10) -59%
Federal Minister of Finance Wolfgang Schauble. Her name is S.Bilguun Trade balance mln.USD 359.90 523.70 45.5%
and she gave an extensive interview about her career, ways to improve Export /accumulated/ mln.USD 958.90 1,299.90 36%
Mongolias tax system, and more. Import /accumulated/ mln.USD 599.10 776.20 30%
It definitely isnt easy to enter the German government and, not to
mention, become an advisor to the minister. How did you become an Policy rates
advisor to Minister Wolfgang Schauble? Central Banks interest rates Latest % Previous % Updated date
I first came to Germany in 1997, when I was 10. Before that, I studied for Policy rate of Mongolbank /BOM/14.00 15.00 12/19/2016
four years at the Mongolian-Russian School No. 3 in Mongolia. I finished PBC base interest rate (China) 4.35 4.60 10/24/2015
secondary school, college and university in Germany. Now, Im studying FED - Federal Funds Rate 1.00 0.75 3/14/2017
at a service tax vocational training institute to earn a state title while ECB - main refinancing rate 0.00 0.05 3/16/2016
working at the ministry. I will graduate this year. Before entering the BOE official bank rate (England) 0.25 0.50 8/4/2016
ministry, I worked as a tax lawyer and analyst at the best tax preparation
company in Germany while playing the stock market. Now, Im a civil
servant. Federal Minister of Finance Wolfgang Schauble has 96 advisors Bank of Mongolia - Interest corridor
and Im the youngest among them. I competed against 130 people for this Indicators Latest % Previous % Updated date
position. Around 20 people passed the first examination, but I was Overnight repo 17.00 18.00 12/19/2016
selected after a job interview..... Overnight deposit 13.00 14.00 12/19/2016
Preliminary balance of payments for March, 2017 (gogo.mn) Repo 16.00 17.00 12/19/2016
Current and capital account balance totaled to USD 38.4 million surplus,
which is USD 83.8 million increase compared to the same period last Money market interest rates
year. The change was mainly due to increase by 32 percent or USD 30.4 Indicators Rates % Daily chg % Yearly chg %
million in goods and services account, and decrease by 31 percent or USD Libor USD 2M 1.0400 -0.05 26.92
63.8 million in primary income account. Financial account had a surplus Libor USD 3M 1.1718 0.12 17.43
of USD 173.1 million in the first 3 months. Last year, Mongolia had a net Libor USD 6M 1.4311 0.53 8.61
borrowing of USD 202.2 million from the rest of the world, whereas this Libor EUR 2M -0.3750 -0.19 -6.06
year it totaled to USD 173.1 million outflow. Thus, the net external Libor EUR 3M -0.3607 0.20 -7.22
financing had decreased by USD 375.3 million. As of the first 3 months
of 2017, overall balance of payments deficit was USD 165.7 million.
Official exchange rates - BOM Cross rates
Mongolia should diversify economy (news.mn) Official rates Cross rates 4/28/17 9:06
Mongolia should diversify its economy in the face of climate change and USD/MNT 2420.57 EUR/USD 1.0860
other stresses, as reliance on mining at the expense of its livestock EUR/MNT 2639.87 GBP/USD 1.2895
industry has put people at risk of commodity price shocks and rising GBP/MNT 3120.24 USD/CHF 0.9947
unemployment, an international aid group said. Ramesh Singh, Mongolia CNY/MNT 351.09 USD/CNY 6.8979
director for Mercy Corps, said strengthening rural livestock markets and JPY/MNT 21.75 USD/JPY 111.20
establishing centres of economic activity outside the over-stretched capital
would enrich the nation's coffers, provide work for young people, and Mongolian Bonds information
boost the country's resilience. Bonds Currency Yield % Last price Daily chg%
Mongol 2018 USD 4.03 100.06 0.04%
USA Mongol 2021 USD 6.04 116.66 0.01%
Filings for U.S. unemployment benefits rose to a four-week high last week Mongol 2022 USD 5.98 95.99 -0.03%
U.S. Durable-Goods Orders Rose Less Than Forecast in March Mongol 2024-Khuraldai bond
USD 6.68 111.23 0.08%
U.S. Republican leaders seek votes for healthcare bill Mongol 2018-Dim sum bond
CNY 8.11 99.32 0.00%
Europe DBM-Samurai 2023 JPY 0.93 103.71 -0.08%
Italy to Raise Taxes to Satisfy Brussels Why the Euro Will Fail TDBM-2020 bond USD 6.42 108.47 -0.04%
UK Consumer Confidence Index dropped one point to -7 in April MMC bond USD 13.74 #N/A N/A 0.00%
The inflation rate in Germany is expected to be 2.0% in April 2017
North Asia Commodity Trading Prices
Japan, China to hold bilateral finance dialogue in May: Aso Commodities Latest price Daily chg% Yearly chg%
Japan March industrial output down 2.1 percent month on month Crude oil /WTI-New York/ $49.19 0.45 -8.43
Japan March core CPI rises 0.2 pct year on year Gold Spot /ounce/ $1,264.28 -0.00 10.18
Commodity market Copper /LME/ $5,692.00 -0.40 2.83
Oil prices felled by Libyan oil restart and weak gasoline demand Iron ore /Beijing/ 510.00 0.00 13.33
Crude rebounds in Asia with next data points on supply eyed Coal /Tianjin/ 1,650.00 0.00 -6.25

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

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DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report
Treasury Management Division 4/28/2017

Previous day's economic calendars Today's economic calendars

Event Period Forecast Actual Previous Event Time Period Estimated Previous

Industrial Confidence Apr 1.30 2.60 1.20 Housing Starts YoY 04/28/2017 01:00 Mar -2.60% -2.60%
Services Confidence Apr 12.90 14.20 12.70 Annualized Housing Starts 04/28/2017 01:00 Mar 0.955m 0.940m
Consumer Confidence Apr F (3.60) (3.60) (3.60) Construction Orders YoY 04/28/2017 01:00 Mar -- 5.70%
Retail Inventories MoM Mar -- 0.40% 0.40% M3 Money Supply YoY 04/28/2017 04:00 Mar 4.70% 4.70%
Durable Goods Orders Mar P 1.30% 0.70% 1.80% CPI Core YoY 04/28/2017 05:00 Apr A 1.00% 0.70%
Initial Jobless Claims 22-Apr 245k 257k 244k GDP Annualized QoQ 04/28/2017 08:30 1Q A 1.00% 2.10%
Continuing Claims 15-Apr 2007k 1988k 1979k Personal Consumption 04/28/2017 08:30 1Q A 0.90% 3.50%
Pending Home Sales NSA YoY Mar -- 0.50% -2.40%
Jobless Rate Mar 2.90% 2.80% 2.80%

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% 99.84 100.27 4.36 3.70 0.7 5-Jan-13 5-Jan-18
Mongol 2021 500 10.875% 116.33 116.99 6.13 5.96 3.9 6-Apr-16 6-Apr-21
Mongol 2022 1,000 5.125% 95.64 96.35 6.05 5.90 5.6 5-Dec-12 5-Dec-22
Mongol 2024-Khuraldai bond 600 8.750% 110.89 111.58 6.74 6.62 6.9 9-Mar-17 9-Mar-24
Mongol 2018 - Dim sum bond 1 billion CNY 7.500% 99.03 99.61 8.38 7.85 1.2 30-Jun-15 30-Jun-18
DBM - Samurai 2023 30 billion JPY 1.520% 103.55 103.87 0.95 0.90 6.7 16-Dec-13 25-Dec-23
TDBM - 2020 bond 500 9.375% 107.65 108.47 6.56 6.28 3.1 19-May-15 19-May-20
MMC 2017 600 8.875% 64.09 65.10 13.85 13.63 -0.1 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 (%)
104.1 1.1%
100 118 1.1%
103.9
100.021 1.0%
115
97 95.881 103.7 1.0%
112 103.707 1.0%
94 103.5 1.0%
/Year to date/ 109 0.9%
91 111.275 103.3
0.9%
106
103.1 0.894% 0.9%
88 /Year to date/
103 0.8%
102.9 0.8%
85 100

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

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DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report
Treasury Management Division 4/28/2017

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 3/31/2017 United States
PRUDENTIAL FINANCIAL INC 13,700 2.74% (2,000.00) 3/31/2017 United States
EATON VANCE CORP 9,668 1.93% 0.00 5/31/2016 United States
LAZARD LTD 9,320 1.86% 2,664.00 3/31/2017 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
ABERDEEN 5,315 1.06% 4,004.00 3/31/2017 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 91,686 9.17% (19126.00) 4/26/2017 United States
ALLIANCE BERNSTEIN 36,490 3.65% 2323.00 2/28/2017 United States
PRUDENTIAL FINANCIAL INC 30,120 3.01% 1305.00 3/31/2017 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 17,100 1.71% (1500.00) 11/30/2016 United States
DANSKE BANK A/S 15,222 1.52% 0.00 3/31/2017 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 9,681 0.97% (1110.00) 3/31/2017 Switzerland
FRANKLIN RESOURCES 9,400 0.94% (12100.00) 3/31/2017 United States
LAZARD LTD 8,955 0.90% (445.00) 3/31/2017 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
SEI INVESTMENTS CO 3,642 0.61% 39,830.00 3/31/2017 United States
SYDINVEST INTERNATIONAL 3,301 0.55% 3,642.00 3/31/2017 Denmark
BLACKROCK 2,945 0.54% 3,301.00 4/26/2017 United States
LANDESBANK BERLIN INVESTMENT GMB 1,500 0.25% 2,945.00 3/31/2017 Germany
AMERIPRISE FIN GRP 700 0.12% 1,500.00 3/31/2017 United States
UBS 300 0.10% 700.00 4/25/2017 Switzerland
CREDIT SUISSE GROUP AG 600 0.10% 300.00 3/31/2017 Switzerland

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, theubpost.mn,

3 montsame.mn, news.mn, gogo.mn