According to 9th annual meeting of FRC in 2016, One of the discussion out of 50 issues was De-listing of “Erchim Engineering” LLC’s debt instrument. FRC decided to delist Erchim bond because met with it’s expiry date and interest payment paid fully.
Erchim bond successfully traded on the primary market and term of life cycle was 6 months with 18.5% interest and interest payment was to payable once it meet with expiry date. Erchim Engineering LLC by issuing debt instruments to the public raised MNT 453,750,000.
Insured corporate bonds are considered risk-free products to repay the new type of financial insurance products as well as interest and principal payments for the insurance company sponsor responsible for 100 percent.
FRC is giving much more attention to introducing new products and services to it’s capital markets, which are able to attract funds from the capital market by issuing bonds enterprises.
Source: www.frc.mn