The Asian Development Bank (ADB) has collected 35 billion Mongolian togrog (MNT) (about $10.2 million) in its first health bond denominated in the local currency of a borrowing member. This issuance marks a milestone in the field of health bonds in local currency.
The bond has a semiannual coupon of 11.25% with a maturity of two years, is denominated in MNT and is settled in US dollars. The issue was underwritten by ING Bank NV and 100% placed among European asset managers.
The proceeds of the issuance will finance the ADB’s project to expand the Intermed hospital for the International Medical Center LLC of Mongolia. This project aims to bring quality healthcare to middle-class Mongolians and improve medical accessibility for remote communities.
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“ADB has long recognized the catalytic role it plays in providing local currency financing to support emerging market needs in various sectors,” said Pierre Van Peteghem, ADB Treasurer.
“The ability to help ADB borrowers mitigate currency risk is crucial to the success of these projects. This first local currency health bond is a continuation of the ADB’s commitment to support Mongolia’s economic recovery.”
Since 2004, the ADB has been issuing local currency bonds to help develop the local bond market in Asia and the Pacific. In 2023, the ADB also issued local currency gender bonds and green bonds in Kazakh tenge and Georgian lari.
