Анар Trade and Development Bank of Mongolia (TDB) is set to return to the U.S. dollar bond market after the government of Mongolia stepped in to guarantee its medium-term notes program. Moody's has assigned the proposed new offering a B2 rating, while Standard & Poor's gave it a B+, in line with the sovereign's ratings. Last June, TDB had attempted to issue a U.S. dollar bond with a term of five years, having indicated a yield of 11.25 percent. However, TDB was forced to pull the deal after Portugal's Banco Espirito Santo announced a restructuring, which caused volatility in the markets. Back then, TDB's tugrug program was to be backed with a non-binding letter of support from the Mongolian government. However, as the rating agencies said the letter of support would have no impact on the way they saw the bonds, the lender decided not to use it.
