Source: Reuters                        Date: 15 June, 2011

Prime Minister S. Batbold expects Mongolia to issue a debut sovereign bond by autumn, and aimed to develop its infrastructure to export power to neighbor China. The amount for the bond has not been finalized. "There are some discussions and ideas, but it has not been finalized yet," Mr. Batbold told reporters at a World Economic Forum event in Jakarta. "Probably the autumn session of our Parliament will take the final decision."

He did not specify what the proceeds would be used for, saying only that his landlocked country plans to build railway lines and roads to neighbors China and Russia, plus power plants. "We have a demand for power and electricity, and we have a plan to build a major power generation system in the mineral development areas," he said. "There is growing demand inside Mongolia and also huge demand inside China, so we could export energy to China."

Mongolia sits on vast quantities of untapped mineral wealth and analysts say it could be one of the fastest growing economies of the next decade, as well as a key investment target for mining giants. China and other emerging states have been snapping up coal to help feed booming demand for power, though poor infrastructure is a stumbling block to Mongolia's commodity expansion plans.