AKIPRESS.COM - Mongolia is paying a heavy price for its first sale of international debt in three years, according to FT.

The vast, sparsely populated country is issuing a new five-year bond that is expected to be sold with a yield of around 11 percent, more than double the 4.125 percent rate the country paid in 2012.

Ulaanbaatar’s issuance comes two months after the country held meetings with investors and follows a volatile start to the year for emerging markets, during which falling commodity prices and the U.S. economic recovery has cooled investor demand for new bonds sold by frontier economies.

The country last issued debt on international markets in 2012 with $1.5 bln of so-called “Genghis bonds” issued with 10- and 5-year maturities in a deal that was 10 times oversubscribed.

However, deteriorating sentiment towards Mongolia has led to a sell off, pushing yields on the five-year debt up to 13.5 percent earlier this year.