DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report

Treasury Management Division 5/5/2017

News Highlights Mongolian Economic Main Indicators

Mongolia Indicators Unit 2016.03 2017.03 Year/chg %
Jason Allford: IMF and WB are ready if Parliament makes its decision Money Supply (M2) bln.MNT 10,112.40 12,177.70 20%
certain (gogo.mn) Inflation /Year to date/ % 1.20% 2.10% 75.0%
Today, May 04, Head of Cabinet Secretariat, Minister J.Munkhbat met Equilibrated overall bal of budget bln.MNT (615.70) (255.10) -59%
with the World Bank representatives, headed by Jason Allford, the Trade balance mln.USD 359.90 523.70 45.5%
Executive Director of the World Bank Group representing Mongolia and Export /accumulated/ mln.USD 958.90 1,299.90 36%
some other countries. Minister J.Munkhbat noted that protecting Import /accumulated/ mln.USD 599.10 776.20 30%
investors rights in legal frame is one of the priorities of the Government
and a council in charge of protecting investors rights was established by Policy rates
an order of Prime Minister. He expressed his thanks to the World Bank Central Banks interest rates Latest % Previous % Updated date
for granting financial support within the IMF program to Mongolia. Policy rate of Mongolbank /BOM/14.00 15.00 12/19/2016
Mr. Jason Allford said - We know that economic conditions were tough PBC base interest rate (China) 4.35 4.60 10/24/2015
when you took power. We are also happy that the economy tends to FED - Federal Funds Rate 1.00 0.75 3/14/2017
revive. It would be a good example to other countries that the Government ECB - main refinancing rate 0.00 0.05 3/16/2016
of Mongolia has established a certain structure for the protection of BOE official bank rate (England) 0.25 0.50 8/4/2016
investors rights at a policy level. Mongolia needs to increase foreign
investment to overcome its economic difficulties. However, restriction of
the investors transaction, making it pass only through Mongolian banks Bank of Mongolia - Interest corridor
has much negative impact on the economy. Asking whether parliament Indicators Latest % Previous % Updated date
is reconsidering its decision concerning the matter he said that if Overnight repo 17.00 18.00 12/19/2016
parliament makes its decision certain, IMF and WB are ready to conclude Overnight deposit 13.00 14.00 12/19/2016
their decision within a short period. Repo 16.00 17.00 12/19/2016

ECONOMIC DEVELOPMENT POLICY TO REFLECT PROPOSALS Money market interest rates

BY BUSINESS SECTOR (theubpost.mn) Indicators Rates % Daily chg % Yearly chg %
Ulaanbaatar /MONTSAME/ The National Development Agency and Libor USD 2M 1.0461 0.24 27.66
Mongolian National Chamber of Commerce and Industry established a Libor USD 3M 1.1712 -0.21 17.37
memorandum of cooperation on May 4 directed at developing public and Libor USD 6M 1.4274 -0.35 8.33
private partnership in the formulation of social and economic Libor EUR 2M -0.3807 -0.19 -7.68
development policy, upgrading the economic competitiveness and Libor EUR 3M -0.3621 0.00 -7.64
increasing investment. The two sides will further collaborate to reflect
proposals and opinions of business people and entrepreneurs opinion in Official exchange rates - BOM Cross rates
policy making of public and private partnership and in short and mid term
Official rates Cross rates 5/5/17 8:58
policy documents for economic development. In the frames of the
USD/MNT 2416.02 EUR/USD 1.0977
memorandum, they also will take actions to conduct joint studies on
EUR/MNT 2636.36 GBP/USD 1.2924
invetsment policy and legal environment and improve their exchange of
GBP/MNT 3110.87 USD/CHF 0.9866
information and harmonization.
Erdene Further Defines and Expands High-Grade Gold Zone at the CNY/MNT 350.34 USD/CNY 6.8960
Bayan Khundii Gold Project, Including 80 Metres of 6.0 g/t Gold JPY/MNT 21.42 USD/JPY 112.62
(bloomberg)
Mongolian Bonds information
Mongolia Moves Closer to IMF Bailout as Lawmakers Act on Concern Bonds Currency Yield % Last price Daily chg%
(bloomberg) Mongol 2018 USD 4.02 100.07 -0.16%
USA Mongol 2021 USD 5.97 116.83 0.08%
Jobless Claims in U.S. Declined More Than Forecast Last Week Mongol 2022 USD 5.92 96.22 0.20%
The House of Representatives narrowly approved legislation to repeal major Mongol 2024-Khuraldai bond
USD 6.58 111.80 0.40%
portions of Obamacare and replace it with a Republican healthcare plan Mongol 2018-Dim sum bond
CNY 8.06 99.38 0.00%
Europe DBM-Samurai 2023 JPY 0.92 103.73 0.00%
Eurozone economic growth at six-year high in April TDBM-2020 bond USD 6.22 108.99 0.42%
Service sector surge boosts UK economy to four-month high MMC bond USD 13.72 #N/A N/A 0.00%
Greenback Struggles to Sustain Upticks, Though Odds of June Hike Rise
North Asia Commodity Trading Prices
Japan, China, South Korea pledge to resist protectionism Commodities Latest price Daily chg% Yearly chg%
North Korea Sanctions Would Get Tougher Under U.S. House Measure Crude oil /WTI-New York/ $45.54 0.04 -15.23
Japans Priests Turn to Property Development Gold Spot /ounce/ $1,228.80 0.05 7.09
Commodity market Copper /LME/ $5,543.00 -1.02 0.14
OPEC-led oil supply cut likely to be extended into second half of 2017-3OPEC Iron ore /Beijing/ 510.00 0.00 13.33
delegates - REUTERS Coal /Tianjin/ 1,630.00 -1.21 -7.39
OPEC Is Fighting a Crisis of Confidence on Two Fronts: Gadfly

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

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

Previous day's economic calendars Today's economic calendars

Event Period Forecast Actual Previous Event Time Period Estimated Previous

Markit Eurozone Services PMI Apr F 56.20 56.40 56.20 Markit Eurozone Retail PMI 05/05/2017 04:10 Apr -- 49.50
Markit Eurozone Composite PMI Apr F 56.70 56.80 56.70 Change in Nonfarm Payrolls 05/05/2017 08:30 Apr 190k 98k
Retail Sales YoY Mar 2.10% 2.30% 1.80% Two-Month Payroll Net Revision
05/05/2017 08:30 Apr -- --
Challenger Job Cuts YoY Apr -- -42.90% -2.00% Change in Private Payrolls 05/05/2017 08:30 Apr 190k 89k
Trade Balance Mar -$44.5b -$43.7b -$43.6b Change in Manufact. Payrolls 05/05/2017 08:30 Apr 10k 11k
Initial Jobless Claims 29-Apr 248k 238k 257k Unemployment Rate 05/05/2017 08:30 Apr 4.60% 4.50%
Continuing Claims 22-Apr 1990k 1964k 1988k Average Hourly Earnings YoY 05/05/2017 08:30 Apr 2.70% 2.70%
Factory Orders Mar 0.40% 0.20% 1.00% Labor Force Participation Rate 05/05/2017 08:30 Apr -- 63.00%
Durable Goods Orders Mar F 0.70% 0.90% 0.70% Underemployment Rate 05/05/2017 08:30 Apr -- 8.90%

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% 99.83 100.29 4.38 3.67 0.7 5-Jan-13 5-Jan-18
Mongol 2021 500 10.875% 116.49 117.21 6.07 5.88 3.9 6-Apr-16 6-Apr-21
Mongol 2022 1,000 5.125% 95.89 96.65 6.00 5.84 5.6 5-Dec-12 5-Dec-22
Mongol 2024-Khuraldai bond 600 8.750% 111.48 112.13 6.63 6.52 6.8 9-Mar-17 9-Mar-24
Mongol 2018 - Dim sum bond 1 billion CNY 7.500% 99.04 99.73 8.38 7.74 1.2 30-Jun-15 30-Jun-18
DBM - Samurai 2023 30 billion JPY 1.520% 103.57 103.89 0.95 0.90 6.6 16-Dec-13 25-Dec-23
TDBM - 2020 bond 500 9.375% 108.16 108.99 6.37 6.08 3.0 19-May-15 19-May-20
MMC 2017 600 8.875% 64.13 65.24 13.84 13.60 -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%
99.979 103.9
1.0%
115
97 96.184 103.7 1.0%
112 103.730 1.0%
94 103.5 1.0%
/Year to date/ 109
111.967 0.9%
91 103.3
106
0.9%
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,

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

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 3/31/2017 United States
UBS 17,840 3.57% (400.00) 1/31/2017 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% 0.00 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% 0.00 3/31/2017 Sweden
ABERDEEN 5,315 1.06% 4,004.00 3/31/2017 United Kingdom
AXA 4,400 0.88% 4,400.00 6/30/2016 France
BLACKROCK 4,045 0.81% (650.00) 1/31/2017 United States
SCHRODER INV MGMT TAIWAN LTD 3,766 0.75% (19.00) 2/28/2017 Taiwan
PRUDENTIAL PLC 3,700 0.74% (300.00) 3/31/2017 United Kingdom
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 93,228 9.32% (18584.00) 5/3/2017 United States
ALLIANCE BERNSTEIN 36,490 3.65% 2323.00 3/31/2017 United States
PRUDENTIAL FINANCIAL INC 30,120 3.01% 1505.00 3/31/2017 United States
FMR LLC 25,620 2.56% 0.00 3/31/2017 United States
GOLDMAN SACHS GROUP INC 21,334 2.13% (7140.00) 3/31/2017 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 3/31/2017 United Kingdom
T ROWE PRICE GROUP INC 10,496 1.05% 0.00 3/31/2015 United States
FRANKLIN RESOURCES 9,400 0.94% (12100.00) 3/31/2017 United States
LAZARD LTD 8,985 0.90% (415.00) 3/31/2017 Bermuda
UBS 8,863 0.89% (1158.00) 3/31/2017 Switzerland
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
SUN LIFE FINANCIAL INC 8,956 1.49% 39,830.00 3/31/2017 Canada
SEI INVESTMENTS CO 3,642 0.61% 8,956.00 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 5/3/2017 United States
NORDEA BANK AB 2,805 0.47% 2,945.00 3/31/2017 Sweden
DEUTSCHE BANK AG 2,600 0.43% 2,805.00 3/31/2017 Germany
LANDESBANK BERLIN INVESTMENT GMB 1,500 0.25% 2,600.00 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, theubpost.mn,

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