Mongolia attracts twice its GDP for debut bond: "The landlocked country has a gross domestic product of just $8.5 billion, so orders were roughly twice the size of the economy. Getting a piece of a frontier credit like this, and one with exposure to China, was certainly part of the attraction. Mongolia is fast-growing — its growth rate in 2011 was about 17.5% — and resource rich.
Previously, the closest thing investors had to Mongolian sovereign paper was through state-owned Development Bank of Mongolia, which had priced a $580 million government-guaranteed bond earlier this year. With a dearth of sovereign paper in Asia, Mongolia’s bond offered a chance to diversify. “There is little sovereign paper in Asia — aside from the Philippines and Indonesia, and some issuance from Sri Lanka, Pakistan and Vietnam,” said Arthur Lau, head of fixed income for Asia ex-Japan at Pinebridge Investments."
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