Allen & Overy announced today that they have represented the underwriters on the debut USD1.5 billion global bond offering by the Government of Mongolia. Allen & Overy advised Bank of America Merrill Lynch, Deutsche Bank, HSBC, J.P. Morgan and TDB Capital who acted as joint lead managers of the Rule 144A/Regulation S offering.
The securities were issued under the Government of Mongolia’s USD5 billion Global Medium Term Note Program in two tranches, Series A USD500 million 4.125% Notes due 2018 and Series B USD1 billion 5.125% Notes due 2022. The Notes were rated by Moody’s (B1), S&P (BB-) and Fitch (B+). The proceeds of the offering are expected to finance infrastructure and industrial projects in Mongolia, including but not limited to mining and railway projects, roads and highways and power plants.
Walter Son, the Allen & Overy partner who led the transaction, said, “The market has widely anticipated a sovereign issue by the Mongolian government for some time now. Its debut issuance has been hugely successful and highlights investor confidence in Mongolia’s economic growth. We are delighted to have advised on such a significant transaction, which is an important milestone in the country’s development.”
The Allen & Overy team comprised Walter Son, partner James Grandolfo, senior associate Alexander Stathopoulos and associate Sally Kim. Partner Kenny Kwan and associate Lingwei Ko based in Singapore advised on the listing of the securities on the Singapore Stock Exchange. Walter Son and team also acted on the debut USD580 million bond issuance by the Development Bank of Mongolia guaranteed by the Mongolian sovereign in March 2012.
