Reuters: Mongolia’s XacBank shelves debut USD deal

The enthusiasm that investors showed for two global bond deals from resource-rich Mongolia earlier this year failed to spill over to the banking sector last week, causing private lender XacBank to shelve its debut dollar deal. XacBank, Mongolia’s fourth-largest, was eyeing a 10% coupon for a three-year deal, but investors balked at that level for a bank rated at B by Moody’s and Fitch. “The pricing was wrong,” said Harsh Agarwal, desk strategist with Credit Suisse. “I would any day own bonds from (Mongolian Mining Corp) trading at the same yield of 10% that was being offered by XacBank, a small privately owned micro-lender.” To read the full article, click hereMongolia’s XacBank shelves debut USD deal

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