Mongolia’s next financing cycle is approaching: the sovereign is expected to return to markets in 2026 as part of ongoing liability management, while the corporate sector — mining, infrastructure, and banks — faces larger, multi-year capex and refinancing needs. Historically, most Mongolian USD bonds have been placed and listed in Singapore, with only episodic equity activity. That route has delivered execution certainty but also persistent challenges: thinner order books, weaker price tension, and limited secondary depth—especially for debut or sub-benchmark deals.

A strategic pivot toward London can materially expand Mongolia’s reach into Western institutional pools. For a resource-rich, frontier credit, London offers better alignment with the investor universe that actually prices and trades EM/high-yield risk at scale.
 

Why London?

1. Deep, relevant buy-side
   London concentrates dedicated EM hard-currency funds, high-yield credit specialists, crossover investment-grade buyers, global macro and credit hedge funds, private credit platforms, and DFI/impact investors. This is the natural constituency for Mongolian sovereign and corporate risk—particularly mining and financials.
2. Commodity finance & mining DNA
   From capital markets to equity research coverage, London is structurally attuned to mining and energy. That ecosystem supports fairer technicals (comps, covenant norms, and recovery analytics) and improves engagement with rating agencies, offtakers, and structured-finance providers.
3. Pricing power through genuine book depth
   A broader, more competitive order book (including US QIBs through a 144A line coordinated via London/NY desks) improves price discovery, tightens new-issue concessions, and supports larger sizes. Better after-market sponsorship (trading desks, ETF/indices exposure, research) reduces illiquidity premium over time.
4. Visibility and benchmarking
   Listing alongside peer EM credits on a widely followed UK venue strengthens Mongolia’s reference curve (sovereign and quasi-sovereign), aiding corporate relative-value and facilitating LME-linked hedging, commodity prepay structures, and supply-chain finance.
5. Policy alignment and ESG credibility
   UK markets reward transparent disclosure, robust governance, and credible sustainability frameworks. Sovereign and SOE alignment with ESG use-of-proceeds or KPI-linked structures draws DFI anchors and taps growing pools of impact capital.
    

What Mongolia needs from London (and vice versa)

For sovereign & policy makers

• Build and maintain a credible benchmark curve: sequence a programmatic issuance plan (incl. taps and LMEs) to anchor pricing for corporates and banks.
• Adopt best-practice disclosure & IR cadence: semi-annual updates, investor days in London/NY, and transparent fiscal and FX/liquidity communications cut uncertainty premia.
• Leverage DFIs (anchor orders, partial guarantees, or policy-based lending) and consider ESG-labelled frameworks where proceeds and KPIs are auditable.

For corporates (mining, infrastructure, banks)

• Upgrade the toolkit: ratings mapped to Western peer groups; audited IFRS with Big-4 sign-off; English-law covenant packages aligned to sector norms.
• Think “curve,” not one-offs: set clear communication on deleveraging paths, capex cadence, and dividend policies; use taps, exchanges, and buybacks to manage the curve and reduce refinancing risk.
• Consider structure where it pays: ESG-linked step-ups, project bonds tied to offtake, or secured notes with transparent collateral waterfalls can broaden demand and tighten spreads.

Strategic implications

• Corporates: lower cost of capital, broader investor base, and stronger global visibility; improved access to structured and ESG capital.
• Policy makers: a London-centric (but global) issuance strategy signals commitment to international standards and supports a more resilient sovereign credit story.
• Regulators: closer coordination with UK listing and disclosure practices upgrades governance norms domestically.

Singapore has offered convenience and proximity, but for Mongolia’s ability to tap into larger pools of capital — larger tickets, tighter pricing, and repeat access — the investor base has to increase.

Why Now and What Is the Significance?

Momentum for a London pivot is already building. Recently, one of Mongolia’s leading financial groups, ICFG, successfully listed in London via a reverse takeover (RTO). At the same time, Mongolia’s systemically important banks are weighing dual-listing opportunities as the 20% beneficial shareholding cap under the Banking Law approaches. These developments underscore a turning point: both sovereign and corporate issuers are being pushed toward deeper, more liquid markets to secure long-term access to capital.

London provides the institutional depth, mining-finance know-how, and secondary-market sponsorship to reduce Mongolia’s frontier discount. The optimal strategy is not either-or: keep APAC relationships active, but lead with London-based, 144A-enabled executions and UK listings to normalize Mongolia’s presence on the Western investor radar. Over time, that’s how you build a curve, compress spreads, and finance growth on your terms.

With this goal in mind, Capital Markets Mongolia will host the Mongolia Investment Forum – London 2025 at the London Stock Exchange. The Forum will serve as a bridge between Mongolian issuers and global capital, bringing together the sovereign (ahead of its expected 2026 issuance), SOEs, banks, and mining/infrastructure corporates with London’s real-money managers, crossover credit funds, commodity specialists, DFIs, and private credit platforms.

Event Highlights include:

• Opening remarks from senior government officials and the British Ambassador to Mongolia
• Keynote presentations on Mongolia’s economy, financial sector, and investment outlook
• Panel discussion: “From Ulaanbaatar to London: The Equity Investment Case for Mongolia”
• Networking with institutional investors, financial institutions, and corporate leaders

By convening Mongolia’s issuers and London’s investor community in one high-level setting, the Forum will showcase the country’s evolving capital markets, strengthen its sovereign credit narrative, and lay the foundation for broader, more competitive access to global pools of capital.