Asian Development Bank’s Landmark Offshore 21 Billion Mongolian Togrog-Linked Bond Offering

June 9, 2020

Cleary Gottlieb represented ING Bank N.V. in the Asian Development Bank’s (ADB) offering of 21 billion Mongolian togrog-linked nomad bonds maturing in 2025.

The proceeds will be deployed to fund ADB’s gender inclusive dairy value chain project in Mongolia. The debt offering priced June 2, 2020, and closed on June 9, 2020.

The issue sets a new benchmark in the international bond market for frontier currencies. Currency-linked bonds are important in development terms because they help plot a yield curve where government issuance is sparse. For example, no Mongolian domestic government bonds have been issued since September 2017; therefore ADB’s nomad bond will now serve as a relevant benchmark.

ADB, headquartered in Manila, Philippines, is a regional multilateral organization established in 1966. With a mission to facilitate prosperous, inclusive, resilient, and sustainable economic development in Asia, it has grown to encompass 68 members since its establishment, of which 49 are from within Asia and the Pacific, and 19 outside.