Mongolian trade bank pulls bond deal

Trade and Development Bank of Mongolia TDBM pulled its five-year dollar bond on Friday, having only announced the deal a day earlier.

The bank blamed adverse market conditions, sparked by concerns over Portuguese lender Banco Espirito Santo’s failure to make coupon payments on its short-term debt on Thursday.

In a statement, TDBM said that the environment was not conducive for primary issuance due to heightened volatility in the secondary markets.

“A few bank bond deals also got pulled in Europe in addition to TDBM’s due to the Portuguese crisis,” said a source close to the deal. “Stock markets dipped and market sentiment was...