MSE lists its first asset-backed securities

The Mongolian Stock Exchange (MSE) registered its first asset-backed securities last Friday in accordance with the MSE Deputy Director’s Order No. A/75, dated November 12, and the Financial Regulatory Commission’s Resolution No. 938, dated October 21.

In particular, InvesCore Active LLC is offering 10,000 asset-backed securities at a fixed price of 400,000 MNT per security on the exchange to generate 4 billion MNT. The new type of stock product will have annual yield rate of 16.4 percent for a term of 24 months and will pay interests every three months.

The Asset Backed Securities Listing Rules was adopted by MSE on February 7, 2020 and by the Financial Regulatory Commission on April 10, 2020.

“It is internationally common that banks and financial institutions pool their assets and create asset backed securities which allow them to raise capitals and reduce risks. This new product will offer not only new financing source for issuers and but also low-risk financial product with fixed income for investors,” MSE said.