Finance Minister Z.Mendsaikhan announces historic reduction in Oyu Tolgoi loan interest rates to 7.9%
Ahead of the National Naadam Festival, the Government announced what it described as a historic achievement in negotiations over the Oyu Tolgoi Investment Agreement.
During the announcement, Minister of Finance Z.Mendsaikhan provided details of the agreement.
"The negotiations were conducted under challenging circumstances, but we have achieved tangible results.
Under the financing structure, shareholder loans are repaid after project loans. The interest rate on loans provided to the Oyu Tolgoi project by international financial institutions is 9.01%. We have negotiated an even lower interest rate for the Rio Tinto shareholder loan, reducing it to 7.9%.
We agreed on an interest rate of SOFR+ 4%, bringing the loan down to its lowest rate”.
The Minister also noted that major Mongolian private sector companies, including systemically important banks and large business groups, currently secure international financing at annual interest rates ranging 8.2-8.6%.
Finance Minister Z.Mendsaikhan announces historic reduction in Oyu Tolgoi loan interest rates to 7.9%
Ahead of the National Naadam Festival, the Government announced what it described as a historic achievement in negotiations over the Oyu Tolgoi Investment Agreement.
During the announcement, Minister of Finance Z.Mendsaikhan provided details of the agreement.
"The negotiations were conducted under challenging circumstances, but we have achieved tangible results.
Under the financing structure, shareholder loans are repaid after project loans. The interest rate on loans provided to the Oyu Tolgoi project by international financial institutions is 9.01%. We have negotiated an even lower interest rate for the Rio Tinto shareholder loan, reducing it to 7.9%.
We agreed on an interest rate of SOFR+ 4%, bringing the loan down to its lowest rate”.
The Minister also noted that major Mongolian private sector companies, including systemically important banks and large business groups, currently secure international financing at annual interest rates ranging 8.2-8.6%.