The Development Bank of Mongolia (DBM) was established in 2011 to foster Mongolia's economic and infrastructure development through long-term financing. DBM plans to finance over 1.3 billion MNT for rail, road, housing, and industrial projects in 2012. Major projects include constructing 1,500 km of roads, housing districts, engineering utilities, and the first phase of a new national railway system. DBM also aims to develop Mongolia's first industrial park in Sainshand through financing various mineral and energy processing plants. Implementation of these large infrastructure ventures faces challenges of contractor capacity and finalizing technical plans.

1. CONFIDENTIAL
Development Bank of Mongolia
Its role in infrastructure development
of Mongolia
March 25, 2012
March 26, 2012

2. CONFIDENTIAL
Agenda
I. Overview of Development Bank of Mongolia (DBM)
II. Infrastructure projects

3. CONFIDENTIAL
I. Overview of Development Bank of Mongolia

4. CONFIDENTIAL
Direct
supervision
DBM is Mongolia’s Only Policy Bank
Parent
Establishment
Mission
100% owned by the Government of Mongolia
DBM was established on 25 March, 2011 by
the Government of Mongolia and under the
Development Bank Law passed by
Parliament on 10 February, 2011
To foster the economic and infrastructure
development of Mongolia by providing long-
term financing for policy-oriented projects
consistent with the Government’s
macroeconomic development strategy
Road construction
Construction &
Infrastructure
Railway construction
Sainshand
Industrial Complex
DBM will play a pivotal role in the development and continuous progress of Mongolia’s economy
1 2
3 4
DBM will finance projects in the following sectors…
Organizational Chart
Government
of Mongolia
Cabinet
Ministry
of Finance
DBM
100%
Direct
supervision
■ The Cabinet is the
highest institution
of Government
administration in
Mongolia and
directly supervises
DBM
■ The Ministry of
Finance
directly
supervises
DBM
Shareholders’
meeting
Board of
Directors
CEO
First Deputy
CEO
Nomination
Committee
Audit Committee
Remuneration
Committee
Credit
Department
Risk Management
Department
Monitoring and
Administration
Department
Asset and
Liability
Management
Department
Asset and Liability
Management
Committee
Credit Committee
Internal Audit
Unit
Executive
Committee
DBM Corporate Structure

5. CONFIDENTIAL
Euro Mid-Term Note Programme (EMTN)
Bond Issuer Development Bank of Mongolia (“DBM” or the “Bank”)
Commencement Date November 30, 2011
Credit Rate Moody’s: B1 (Stable) / S&P: BB- (Positive) / Fitch: B+ (Stable)
Gaurantor*
Unconditionally and irrevocably guaranteed by the Government
of Mongolia (“GoM”)
Total Amount 600.0 /six hundred / million USD
Period 5 years
Listed Stock Exchange Singapore Stock Exchange
Interest Payment 6 months after first proceed and semi-annually
Bond Purpose
To finance new railway projects, design and construction of
roads and infrastructure projects related to housing.
Placement Type Private and Public placement
Placed Bond Amount
2011-12-09, 1 year, 20 million USD, 6.0% (private)
2012-03-21, 5 years, 580 million USD, 5.75% (public)
DBM 600 M$
EMTN
Underwriters
November 30,
2011

6. CONFIDENTIAL
First Debut Bond for the DBM
Distribution by Geography
% of allocation
Asia (32%)
Europe (36%)
US Offshore
(32%)
FM/AM (85%)
Private Banks
(12%)
Other (3%)
Distribution by Investor Type
% of allocation
• First sovereign-linked public bond offering
from Mongolia
• A benchmark size issue; opened the
international bond markets to Mongolian
borrowers
• US$ 6.6bn order-book with 13x
oversubscription, more than 300 accounts
participated
• Upsized to USD 580mn, priced at 5.75%
• Tightest ever pricing for a debut EM

7. CONFIDENTIAL
3
II. Infrastructure projects

8. CONFIDENTIAL
Infrastructure Projects to be financed
29%
1%
3%
15%
4%
40%
3%
5%
Total cost 2012 % in portfolio
Road Construction 845.74 375.84 29.0%
Road Designing 11.06 6.30 0.5%
100,000 Housing Construction 132.70 37.65 2.9%
6% Mortgage Loan Fund 200.00 200.00 15.4%
Engineering Utility 108.60 57.36 4.4%
Railway 521.00 521.00 40.1%
Sainshand Industrial Park 40.00 40.00 3.1%
Public-Private Partnership 60.00 60.00 4.6%
 Development Bank of Mongolia is mandated to provide fund for projects designated in the
Parliament Resolution No.15 of 2011.
 In 2012 DBM plans to finance MNT 1.3bn for rail-road, roads, infrastructure for residential
districts, housing loan fund, and Sainshand Industrial Park projects.

9. CONFIDENTIAL
Road Projects
 DBM will finance construction of 1,500 km paved
roads.
 The roads will pass through 12 provinces.
 Construction work will take approximately 2 years to
complete.
 In order to improve road quality, independent
monitoring consultant will be hired for each roads.
existing roadsunder constructionto be built by DBM fund
 48 km of roads’ construction and reconstruction work
will be financed by DBM.
 A new leveled intersection at eastern crossroad, 2
bridge extension will be built.
 Most of the projects will take 1 year to complete.
 Construction monitoring consultant will be hired for
Ulaanbaatar roads for first time.
to be built by DBM fundPlanned road
Rural road construction Ulaanbaatar road construction
DBM will finance 1,600 km of road construction and 4300 km of road designing project included in
“New Development” program stipulated by the Parliament Resolution No.36 of 2011:

10. CONFIDENTIAL
12th district
16th district
15th district
Buyant Ukhaa, Yarmag
19th district
7th district
Housing & Utility Projects
A new residential district with 28 blocks for 1,764
households. The government provides the land to
Mongolian Housing Finance Corporation to build the
district in 1.5 years.
Total cost of the project is 76.6 billion MNT including
8.3 billion MNT for utility and public structures.
Buyant-Ukhaa district
Chinggis Khan Intl. Airport.
 161 billion MNT for 20 heat supply,
 67 billion MNT for 10 electricity and heap
transmission
 150 billion MNT for 25 clean water and sewage
system.
 And it includes “New county center” project for 5
county with total of 50 billion MNT budget.
Buyant-Ukhaa district Engineering Utility
Bayangol valley
new district
The Government Resolution No.149 of 2011 has designated 3 housing construction and utility projects
to be financed by DBM.

11. CONFIDENTIAL
Railway Projects
1st PHASE – 1100 km
Dalanzadgad – Tavan tolgoi – Zuunbayan (Sainshand)
Sainshand – Baruun Urt
Baruun Urt – Khuut
Khuut – Choibalsan
2nd PHASE – 900 km
Nariin Sukhait – Shivee Khuren
Ukhaa Khudag – Gashuun Sukhait
Khuut – Tamsagbulag - Numrug
Khuut - Bichigt
3rd PHASE – 3600 km
Western Railroad Network
The State Policy on Railway
Transportation was approved
by the Parliament Resolution
No.32 dated 2010 to develop a
freight system between
strategic mines and industrial
clusters, to establish a national
transportation network, and to
support nationwide economical
and industrial growth.
The new railway will be
constructed towards east, in
order to reach the North-
Eastern industrial region of
China, and beyond to Korean
and Japanese markets.
Connecting strategic mines in
the South-Eastern region to the
market will amplify their
economic outputs
Dalanzadgad
Baruun-Urt
Choibalsan
Bichigt
Zamiin Ude
Sainshand
Ereentsaw
Khuut
Tavantolgoi
Numrug
Gashuun Sukhait
Nariinsukhait
Shivee Khuren
Existing Rail
1st phase
2nd phase
Oyu tolgoi

12. CONFIDENTIAL
Sainshand Project
Parliament of Mongolia has
approved by its Resolution #45 to
build “Sainshand Industrial Park”.
Establishing a processing factory-
complex in Sainshand and
introducing leading technique and
high technology will increase the
competitiveness of Mongolian
economy as well as bring
significant impact on socio-
economic development of the
country..
In 2013-2021, the average growth
of GDP is estimated to reach
15.8% annually, with refineries
14% of the total GDP.
Bechtel USA, an engineering
corporation is engaged in Master
Plan development for the project.
Feasibility studies for the each
processing factories are planned
to be commenced from April, 2012.
Projects
Project cost
(USD
million)
Capacity
(million tons per
annum)
Implementation
schedule
Target
Coking Coal 400
2.0 MTPA of
metallurgic coke
36 month
Coke for export
Coal gasification 1000
DRI reducing gas
and hydrogen for
refinery
48-54 month
For export and
domestic markets
Copper smelting
plant
2000
300 kTPA
42 month
For export and
domestic markets
Oil refinery plant 900
1.0 MTPA of crude
oil (20,000 barrels
per day)
48-54 month
For domestic
market
Iron Ore Pellets
Plant
500
4.5 MTPA
36-40 month
Pellets for DRI
feed and export
Direct Reduction
Iron (DRI) / Hot
Briquette Iron
500
2.5 MTPA
42 month
For export and
domestic markets
Cement Plant 500
1.0 MTPA
30-36 month
For domestic
markets, also can
be exported to
China
Power plant 750
1050 MW
electrical power 45 month
For Industrial
Park’s usage
Industrial Park
Infrastructure
3650
Water, heating,
sewerage
For Industrial parks
usage

13. CONFIDENTIAL
What is next…
Road projects :
 MRTCUD is responsible for selecting eligible contractors.
 Insufficient capacity of domestic construction companies for construction of 1600 km road.
 Frequent change of government decisions.
Housing & Utility
 MRTCUD, MMRE will select the contractors for utility projects
 Some projects do not have technical design
Railway
 Implementation of the State Policy on Railway Transportation is in the discussion of the
Cabinet.
Sainshand
 Bechtel Group, the consultant for development of master plan have not submitted yet the
final report.

14. CONFIDENTIAL
Development Bank of Mongolia
Thank you.