DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report

Treasury Management Division 5/2/2017

News Highlights Mongolian Economic Main Indicators

Mongolia Indicators Unit 2016.03 2017.03 Year/chg %
IMF delays Mongolia`s request on Extended Fund Facility Program Money Supply (M2) bln.MNT 10,112.40 12,177.70 20%
(gogo.mn) Inflation /Year to date/ % 1.20% 2.10% 75.0%
The board of International Monetary Fund held a meeting on Apr 28th. Equilibrated overall bal of budget bln.MNT (615.70) (255.10) -59%
However, IMF delayed Mongolia`s request on Extended Fund Facility Trade balance mln.USD 359.90 523.70 45.5%
Program. IMF office in Mongolia explained that it was delayed due to the Export /accumulated/ mln.USD 958.90 1,299.90 36%
Parliament`s resolution linked to the approval of state budget 2017 which Import /accumulated/ mln.USD 599.10 776.20 30%
states major companies such as Oyu Tolgoi LLC to transfer their all
payments and transactions through banks only operating in Mongolia. Policy rates
IMF noted to consider Mongolia`s request after studying the resolution Central Banks interest rates Latest % Previous % Updated date
whether it violated the law on investment and harmful to investors. Policy rate of Mongolbank /BOM/14.00 15.00 12/19/2016
Delegations led by the Minister of Finance B.Choijilsuren, the President PBC base interest rate (China) 4.35 4.60 10/24/2015
of Bank of Mongolia N.Bayartsaihan attended IMF`s spring meeting that FED - Federal Funds Rate 1.00 0.75 3/14/2017
was held in Washington DC, USA on Apr 18th. ECB - main refinancing rate 0.00 0.05 3/16/2016
At the meeting, Mongolian delegations met Managing Director of IMF BOE official bank rate (England) 0.25 0.50 8/4/2016
Ms. Christine Lagarde and World Bank Group President Jim Kim and
introduced Mongolia's socio-economic situation as well as expressed
Mongolia`s request on Extended Fund Facility Program. Meanwhile, they Bank of Mongolia - Interest corridor
have given the recommendation to review the resolution approved by the Indicators Latest % Previous % Updated date
Parliament. Overnight repo 17.00 18.00 12/19/2016
Overnight deposit 13.00 14.00 12/19/2016
Consultative meeting on constitutional amendments held Repo 16.00 17.00 12/19/2016
The second survey for the first nationwide poll on constitutional
amendments took place at the State House this weekend. The two-day Money market interest rates
consultative meeting, led by legal experts and a task force studying Indicators Rates % Daily chg % Yearly chg %
constitutional amendments, was carried out with nearly 730 individuals Libor USD 2M 1.0372 0.00 26.58
randomly selected by the National Statistics Office (NSO) out of an initial Libor USD 3M 1.1723 0.24 17.48
pool of round one survey participants. Representatives from political Libor USD 6M 1.4263 -0.29 8.24
parties, foreign diplomatic missions, resident representatives of Libor EUR 2M -0.3786 -0.95 -7.07
international organizations working in Mongolia, 25 international Libor EUR 3M -0.3629 -0.60 -7.86
observers, and nearly 30 domestic observers sat in on the consultative
meeting.
Exploration sector ready to regain lost ground (gogo.mn) Official exchange rates - BOM Cross rates
The map shows the places where exploration licences will be allocated. Official rates Cross rates 5/2/17 8:53
They total up to 20.1 million hectares or 12.8% of Mongolias total USD/MNT 2419.02 EUR/USD 1.0906
territory. The mining ministry is following a policy of increasing national EUR/MNT 2634.43 GBP/USD 1.2899
wealth by discovering new mineral deposits that can then be developed. GBP/MNT 3124.53 USD/CHF 0.9959
Exploration is also the sector to attract the most foreign investment, which CNY/MNT 350.91 USD/CNY 6.8935
had earlier poured in, only to almost dry up in the past seven years, JPY/MNT 21.63 USD/JPY 111.88
following the blanket ban on issue of new licences and cancellation of
existing ones, leading to confusion among investors who preferred to step Mongolian Bonds information
back. Domestic companies had carried on exploration work, however, as Bonds Currency Yield % Last price Daily chg%
S.Bold-Erdenes article in this issue details. Mongol 2018 USD 4.10 100.05 -0.11%
USA Mongol 2021 USD 6.07 116.54 -0.14%
Dollar hits 1-month high vs yen as U.S. yields rise on Mnuchin comments Mongol 2022 USD 6.00 95.94 -0.58%
Trump says he's actively considering breaking up big banks Mongol 2024-Khuraldai bond
USD 6.63 111.48 -0.24%
Trump won't trade U.S. jobs for China's help on North Korea: Ross Mongol 2018-Dim sum bond
CNY 8.06 99.38 0.00%
Europe DBM-Samurai 2023 JPY 0.92 103.74 0.01%
EU sets Britain tough divorce terms, slams budget veto TDBM-2020 bond USD 6.39 108.52 -0.05%
Op-Ed: French elections are an economic non-event MMC bond USD 13.72 #N/A N/A 0.00%
Trump Says He Is Considering Breaking Up Wall Street Banks
North Asia Commodity Trading Prices
Trump Says He'd Meet North Korea's Kim If Conditions Right (2) Commodities Latest price Daily chg% Yearly chg%
China's Markets and Economy Are Going in Different Directions Crude oil /WTI-New York/ $48.74 -0.20 -9.27
Japanese Stocks Climb as Yen Weakens; Bonds Slip: Markets Wrap Gold Spot /ounce/ $1,256.89 0.02 9.53
Commodity market Copper /LME/ $5,735.50 0.76 3.61
Crude drifts weaker in Asia with market looking to API estimates Iron ore /Beijing/ 510.00 0.00 13.33
Aramco Cuts Asia Oil Pricing as Saudis Seen Losing Market Share Coal /Tianjin/ 1,650.00 0.00 -6.25
Oil Price Optimism Wears Off as Texas Wildcatters Drill On (2)

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

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DEVELOPMENT BANK OF MONGOLIA Daily Treasury Report
Treasury Management Division 5/2/2017

Previous day's economic calendars Today's economic calendars

Event Period Forecast Actual Previous Event Time Period Estimated Previous

Personal Income Mar 0.30% 0.20% 0.40% Markit Eurozone Manufacturing05/02/2017

PMI 04:00 Apr F 56.80 56.80
Personal Spending Mar 0.20% 0.00% 0.10% Unemployment Rate 05/02/2017 05:00 Mar 9.40% 9.50%
PCE Core YoY Mar 1.60% 1.60% 1.80% Wards Total Vehicle Sales 05/02/2017 Apr 17.10m 16.53m
Markit US Manufacturing PMI Apr F 52.80 52.80 52.80 Wards Domestic Vehicle Sales 05/02/2017 Apr 13.30m 12.97m
ISM Manufacturing Apr 56.50 54.80 57.20
Monetary Base YoY Apr -- 19.80% 20.30%
Nikkei Japan PMI Services Apr -- 52.20 52.90
Nikkei Japan PMI Composite Apr -- 52.60 52.90
Caixin China PMI Mfg Apr 51.30 -- 51.20

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% 99.73 100.30 4.53 3.66 0.7 5-Jan-13 5-Jan-18
Mongol 2021 500 10.875% 116.16 116.93 6.17 5.97 3.9 6-Apr-16 6-Apr-21
Mongol 2022 1,000 5.125% 95.49 96.29 6.09 5.91 5.6 5-Dec-12 5-Dec-22
Mongol 2024-Khuraldai bond 600 8.750% 111.18 111.78 6.69 6.58 6.9 9-Mar-17 9-Mar-24
Mongol 2018 - Dim sum bond 1 billion CNY 7.500% 99.03 99.73 8.38 7.74 1.2 30-Jun-15 30-Jun-18
DBM - Samurai 2023 30 billion JPY 1.520% 103.58 103.90 0.95 0.90 6.7 16-Dec-13 25-Dec-23
TDBM - 2020 bond 500 9.375% 107.76 108.52 6.52 6.25 3.0 19-May-15 19-May-20
MMC 2017 600 8.875% 64.13 65.22 13.84 13.61 -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%
99.935 103.9
1.0%
115
97 103.7 1.0%
95.498 103.742
112 1.0%
94 103.5 1.0%
/Year to date/ 109 0.9%
91 111.283 103.3
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,

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

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 92,928 9.29% (17884.00) 4/28/2017 United States
ALLIANCE BERNSTEIN 36,490 3.65% 2323.00 2/28/2017 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 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 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
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 4/28/2017 United States
NORDEA BANK AB 2,805 0.47% 2,945.00 3/31/2017 Sweden
LANDESBANK BERLIN INVESTMENT GMB 1,500 0.25% 2,805.00 3/31/2017 Germany
AMERIPRISE FIN GRP 700 0.12% 1,500.00 3/31/2017 United States
UBS 300 0.10% 700.00 4/27/2017 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