The Asian Development Bank has raised MNT 35 billion 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 percent 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 percent with asset managers based in Europe.

The proceeds will fund Asian Development Bank’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.

“Asian Development Bank has long recognized the catalytic role it plays in bringing local currency financing to support emerging market needs in various sectors,” said the bank’s Treasurer Pierre Van Peteghem. “The capability to help Asian Development Bank’s borrowers mitigate currency risk is crucial to the success of these projects. This first local currency health bond is a continuation of Asian Development Bank’s commitment to support Mongolia’s economic recovery.”