from BDSec JSC (Mongolia’s Largest Stock Brokerage and Investment Bank)..
May 6, 2013, By Nick Cousyn
Reuters reported Friday that the $2.5B loan to Oyu Tolgoi to fund Phase 2 con¬struction was not only in place, but oversubscribed.
Despite much being made about the US abstaining from a World Bank vote in March, citing “environmental and social concerns”, Reuters reports OT is backed by $1.95B in direct loans from US, Australian, European and Canadian export credit agencies.
A syndicate of this magnitude greatly reduces future political risk, regardless of which party is in power in the years to come.
With the Presidential election less than two months away, investors should focus on what “they do” (The GOM and OT), not what “they say” (or don’t say), should this loan get funded we would view it as a significant and positive catalyst.
Link to the entire article: http://www.bdsec.mn/files/Another_Positive_$2.5B_Oyu_Tolgoi_Loan_Oversubscribed.pdf