EBRD loan in fast growing Mongolian company
EBRD Press Release
Syndicated loan will boost production, widen consumer choice
The EBRD is making its first syndicated loan in Mongolia with a $13 million credit to MCS Coca-Cola LLC, a privately-held Mongolian soft-drinks producer, to help expand its production, broaden its product range and improve its waste-water treatment and recycling processes.
MCS, which holds the franchise for Coca-Cola products in Mongolia, will use the funds to construct a Greenfield bottling plant. It will increase MCS’ production capacity and will also help the company introduce new products including juices, flavoured waters and iced teas. MCS is a wholly-owned subsidiary of the MCS Holding LLC and one of the largest private companies in Mongolia.
The EBRD is providing $7 million, with the remaining $6 million to be syndicated to Cordiant under the EBRD’s A/B loan structure.
This first syndicated loan to a private company in Mongolia is expected to demonstrate the advantages to the sector of gaining access to long term commercial funds in this way and other similar projects may follow.
John Chomel-Doe, the EBRD’s Director for Mongolia, said, “Supporting this expansion will help the company expand the choice of products for local consumers and also make a difference to the environment.”
Mr. Od, the President of MCS Holding LLC, said “This loan will support the expansion of our soft drink product portfolio and increase consumer choice of quality brands. We have no doubt that this project will help to take our beverages business to a different level and promote local manufacturing, employment, and environmentally friendly production.”
In addition to the construction of the new bottling plant, the EBRD financing will go towards investing in a new waste-water treatment and recycling plant that will also be used at a neighbouring MCS-APB brewery.
This is the EBRD’s third investment in the agribusiness sector of Mongolia, which started to receive investments from the Bank in 2006.
In the agribusiness sector, the EBRD has directly committed more than €4.3 billion in over 310 projects across central and Eastern Europe and the Commonwealth of Independent States. To date, the EBRD has invested a total €59.7 mln in Mongolia alone.