TOP 100 BUSINESS UNITS DISCUSS THE EXIT TO THE STOCK MARKET TOGETHER

Sustainable financing and green bonds are of primary importance for the country's economic and social development and inclusive growth. For this reason, the Financial Regulatory Commission will inform TOP-100 enterprises about sustainable financing, the importance of green bonds, and their regulatory environment, introduce the possibility of attracting financing through the capital market, and support programs for enterprises, and exchange opinions on the topic "Opportunity for attracting financing - sustainable finance and green bonds" discussion was held on 13 march 2023.

D. Bayarsaikhan, (Chairman of the FRC), opened the discussion organized jointly with the Mongolian National Chamber of Commerce and Industry (MNCIT), International Finance Corporation (IFC), and Mongolian Sustainable Financing Association (TOS Association). Chairman highlighted "Last year, the FRC, together with the Ministry of Finance, successfully organized an IPO forum among professional organizations participating in the securities market, issuers, and investors. Since then, as of today, 4 domestic companies have raised a total of MNT 157 billion funds through IPOs in the stock market, 1 company has issued open bonds worth MNT 20 billion, and 91 companies have issued bonds from 72 companies on the non-exchange market, totaling about MNT 996 billion has been withdrawn and collected. On the other hand, since the implementation of the "Sustainable Financing Program", we cooperated with international organizations such as IFC/International Finance Corporation/, Association for Financial Inclusion /AFI/, European Bank for Reconstruction and Development /EBRD/, TOS Union. During this period, as a public proposal, the company's bond issuance process was simplified in accordance with international standards, and the regulatory environment for attracting funds from the capital market instead of short-term and expensive bank loans was approved. Thus, for the first time in the history of Mongolia's stock market, it was possible to issue "green bonds" that meet international standards. Also, with the approval of the "Green Taxonomy" by the Financial Stability Board, our country became one of the 2 countries that approved the green taxonomy in the world, and banks, financial institutions, and investors have the basic conditions to finance green loans and green investment projects and programs.

Furthermore, during the "Green Financing Regional Conference" organized last year under the auspices of the President of Mongolia, the member organizations of the Financial Stability Council approved the "National Roadmap for Sustainable Finance" in accordance with this, supporting sustainable financing and developing the capital market in a green manner. worked with attention. In addition, within the framework of reforms initiated by the Parliament and the Government, such as the "Interest Rate Reduction Strategy", banking sector reform, and privatization of state-owned legal entities, the Financial Regulatory Commission has taken necessary policies and regulatory measures and supported domestic enterprises in launching new products. As a result, 51 new financial products were launched in the last 2 years, and the market value reached MNT 7 trillion, an increase of 15.2 percent from the same period last year.

Thus, at a time when the domestic capital market has undergone major positive changes and the interest of companies to issue securities is increasing, you should actively participate in the capital market by making an IPO and attracting cheap financing by issuing corporate bonds. We encourage you to contribute to the further development of the industry. Accordingly, we are pleased to announce that a short-term program aimed at actively participating the best enterprises in the capital market will be implemented. Participants of the discussion were introduced to the program to support the issuance of securities in the capital market, and also gave information about sustainable finance, the example of many countries and regions and Mongolia, the importance of corporate bonds, the regulatory environment, and green bonds.