MANILA — The Asian Development Bank (ADB) has raised 35 billion Mongolian togrog (MNT) (about $10.2 million) in its first health bond denominated in the local currency of a borrowing member. The issue sets a milestone for health-focused local-currency bonds.
The bond carries a 11.25% semi-annual coupon with a 2-year bullet maturity, denominated in MNT and settled in United States dollars. The bond issue was underwritten by ING Bank N.V. and was placed 100% with asset managers based in Europe.
The proceeds will fund ADB’s Intermed Hospital Expansion Project for International Medical Center LLC in Mongolia. This project aims to bring quality health care to middle-class Mongolians and improve medical accessibility for distant communities.
“ADB has long recognized the catalytic role it plays in bringing local currency financing to support emerging market needs in various sectors,” said ADB Treasurer Pierre Van Peteghem. “The capability to help ADB’s borrowers mitigate currency risk is crucial to the success of these projects. This first local currency health bond is a continuation of ADB’s commitment to support Mongolia’s economic recovery.”
Since 2004, ADB has been issuing local currency bonds to contribute to local bond market development in Asia and the Pacific. In 2023, ADB also issued local currency gender bonds and green bonds in Kazakhstan tenge and Georgian lari.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
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