DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report

Treasury Management Division 4/18/2017

News Highlights Mongolian Economic Main Indicators

Mongolia Indicators Unit 2016.03 2017.03 Year/chg %
POLITICIANS JOIN THE PROTEST AGAINST OFFSHORE Money Supply (M2) bln.MNT 10,112.40 12,177.70 20%
ACCOUNT HOLDERS (theubpost.mn) Inflation /Year to date/ % 1.20% 2.10% 75.0%
Last weekend, Member of Parliament S.Javkhlan, former Deputy Prime Equilibrated overall bal of budget bln.MNT (615.70) (255.10) -59%
Minister Ts.Oyunbaatar, and former MP S.Ganbaatar showed up at Trade balance mln.USD 359.90 523.70 45.5%
Sukhbaatar Square, where a group of people had gathered to protest Export /accumulated/ mln.USD 958.90 1,299.90 36%
offshore account holders. We want results from this demonstration. We Import /accumulated/ mln.USD 599.10 776.20 30%
didnt gather here to become a tool for some kind of political party. This
is a civil fight! said B.Batsaikhan, the head of the United Movement Policy rates
Against Offshorers, the group who organized the demonstration. Central Banks interest rates Latest % Previous % Updated date
B.Batsaikhan stated that the movement only wants the politicians who Policy rate of Mongolbank /BOM/14.00 15.00 12/19/2016
have been revealed to have offshore accounts to be held accountable and PBC base interest rate (China) 4.35 4.60 10/24/2015
to retrieve public funds. He demanded that the state takes proper action on FED - Federal Funds Rate 1.00 0.75 3/14/2017
the matter, instead of simply approving amendments to the Law on ECB - main refinancing rate 0.00 0.05 3/16/2016
Regulating and Avoiding Conflicts of Interest Among Public Officials, BOE official bank rate (England) 0.25 0.50 8/4/2016
which has received criticism from MPs.
Amendments to the 2017 state budget approved (theubpost.mn) Bank of Mongolia - Interest corridor
By the post-midnight conclusion of Fridays parliamentary session, Indicators Latest % Previous % Updated date
Parliament approved the final draft of amendments to the 2017 state Overnight repo 17.00 18.00 12/19/2016
budget and bills attached to it, including six laws and three resolutions Overnight deposit 13.00 14.00 12/19/2016
required to enrollment in an extended fund facility program from the Repo 16.00 17.00 12/19/2016
International Monetary Fund. The amendments were approved by
Parliament despite opposition from the Democratic Party and Money market interest rates
entrepreneurs, who criticized a number of the tax increases outlined in the Indicators Rates % Daily chg % Yearly chg %
proposed amendments put forward by Cabinet. According to the Libor USD 2M 1.0350 0.16 26.31
amendments, revenue is expected to be 23.2 percent of GDP at six trillion
Libor USD 3M 1.1584 0.00 16.09
MNT, expenditure is expected to be 33.6 percent of GDP at 8.7 trillion
Libor USD 6M 1.4032 -0.51 6.49
MNT, and the deficit is expected to be 10.4 percent of GDP at 2.7 trillion
Libor EUR 2M -0.3750 -0.38 -6.06
MNT.
HOUSING PRICE INDEX INCREASED IN SHORT TERM Libor EUR 3M -0.3579 0.79 -6.37
(montsame.mn)
Ulaanbaatar /MONTSAME/ Tenkhleg Zuuch LLC reports on the March Official exchange rates - BOM Cross rates
results of the Housing Price Index study conducted independently at the Official rates Cross rates 4/18/17 8:59
request of the Bank of Mongolia. USD/MNT 2404.89 EUR/USD 1.0642
The research shows that the general index of housing price was 1,01 in EUR/MNT 2558.32 GBP/USD 1.2559
March, by 1.0 per cent up than in January 2013, basic consideration GBP/MNT 3014.65 USD/CHF 1.0043
period of the research. The index increased by 0.17 percent compared to CNY/MNT 349.20 USD/CNY 6.8803
the previous month. The general index increased by 0.10 per cent JPY/MNT 22.20 USD/JPY 109.15
compared to the starting period of this year, and dropped by 3.34 per cent
compared to the same month of previous year. Mongolian Bonds information
Bonds Currency Yield % Last price Daily chg%
Mongol 2018 USD 4.17 99.96 -0.002%
USA Mongol 2021 USD 6.29 115.86 0.073%
Dollar rises off five-month low vs yen on Mnuchin comments, higher yields Mongol 2022 USD 6.21 94.91 -0.002%
Trump Says China Isn't, Treasury Says No One Is A Currency Manipulator Mongol 2024-Khuraldai bond
USD 6.88 110.08 0.000%
Global stocks bounce as earnings in focus; dollar steadies on Mnuchin Mongol 2018-Dim sum bond
CNY 8.15 99.26 0.000%
Europe DBM-Samurai 2023 JPY 0.89 103.94 0.055%
Turkey's Lira Gains as Erdogan Victory Sparks Relief Rally TDBM-2020 bond USD 6.70 107.72 0.201%
U.S. Defense Secretary Mattis to talk Islamic State, Syria in Middle East MMC bond USD 13.79 #N/A N/A -0.075%
U.S. Vice President says South Korea-U.S. free trade agreement to be reviewed
North Asia Commodity Trading Prices
China Q1 GDP Expands 6.9% vs. 6.8% Expected Commodities Latest price Daily chg% Yearly chg%
China plans two million new units of public housing for 2017: Xinhua Crude oil /WTI-New York/ $52.64 -0.02 -2.01
Asian Stocks Climb While Yen Slips as Risks Fade: Markets Wrap Gold Spot /ounce/ $1,283.44 -0.10 11.85
Commodity market Copper /LME/ $5,692.00 1.14 2.83
Crude prices edge up in Asia with US VP Pence and API estimates eyed Iron ore /Beijing/ 580.00 0.00 28.89
Gold drifts weaker in Asia with Pence Japan visit in focus Coal /Tianjin/ 1,660.00 0.00 -5.68
Most oil producers want extension of output cuts: Iran minister

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

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DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report
Treasury Management Division 4/18/2017

Previous day's economic calendars Today's economic calendars

Event Period Forecast Actual Previous Event Time Period Estimated Previous

Empire Manufacturing Apr 15.00 5.20 16.40 Housing Starts 04/18/2017 08:30 Mar 1250k 1288k
NAHB Housing Market Index Apr 70.00 68.00 71.00 Housing Starts MoM 04/18/2017 08:30 Mar -3.00% 3.00%
Total Net TIC Flows Feb -- $19.3b $110.4b Building Permits 04/18/2017 08:30 Mar 1250k 1213k
Net Long-term TIC Flows Feb -- $53.4b $6.3b Building Permits MoM 04/18/2017 08:30 Mar 2.80% -6.20%
Industrial Production MoM 04/18/2017 09:15 Mar 0.40% 0.00%
Capacity Utilization 04/18/2017 09:15 Mar 76.10% 75.40%
Manufacturing (SIC) Production04/18/2017 09:15 Mar 0.00% 0.50%

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% 99.74 100.18 4.49 3.86 0.7 5-Jan-13 5-Jan-18
Mongol 2021 500 10.875% 115.48 116.25 6.39 6.19 4.0 6-Apr-16 6-Apr-21
Mongol 2022 1,000 5.125% 94.56 95.26 6.29 6.13 5.6 5-Dec-12 5-Dec-22
Mongol 2024-Khuraldai bond 600 8.750% 109.80 110.37 6.93 6.84 6.9 9-Mar-17 9-Mar-24
Mongol 2018 - Dim sum bond 1 billion CNY 7.500% 98.98 99.54 8.40 7.90 1.2 30-Jun-15 30-Jun-18
DBM - Samurai 2023 30 billion JPY 1.520% 103.78 104.11 0.92 0.87 6.7 16-Dec-13 25-Dec-23
TDBM - 2020 bond 500 9.375% 106.90 107.72 6.85 6.56 3.1 19-May-15 19-May-20
MMC 2017 600 8.875% 63.84 64.87 13.90 13.68 -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 (%)
103 104.1 1.1%
99.998 118 1.1%
100 103.9
94.838 1.0%
115
97 1.0%
103.7
112 103.481 1.0%
94
103.5 1.0%
91 109
0.9%
110.135 103.3
88 106 0.9%
103.1 /Year to date/ 0.9%
85 103 0.969% 0.8%
82 100 102.9 0.8%

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

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DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report
Treasury Management Division 4/18/2017

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% 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
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
DEUTSCHE BANK AG 3,000 0.60% 0.00 12/31/2014 Germany

Bond holders of Mongol 2022

Names Position % of position Latest change Fiing date Country
BLACKROCK 111,612 11.16% (3674.00) 4/14/2017 United States
ALLIANCE BERNSTEIN 36,490 3.65% 2323.00 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 9,681 0.97% (1110.00) 3/31/2017 Switzerland
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
SYDINVEST INTERNATIONAL 3,301 0.55% 3,642.00 3/31/2017 Denmark
LANDESBANK BERLIN INVESTMENT GMB 1,500 0.25% 3,301.00 3/31/2017 Germany
CREDIT SUISSE GROUP AG 600 0.10% 1,500.00 3/31/2017 Switzerland
UBS 300 0.10% 600.00 4/12/2017 Switzerland
NATIONWIDE FUND ADVISORS 500 0.08% 300.00 3/31/2017 United States
BLACKROCK - 0.05% 500.00 4/14/2017 United States
PFA KAPITALFORENING 200 0.03% 0.00 3/31/2017 Denmark

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