The FINANCIAL — The European Bank for Reconstruction and Development (EBRD) is continuing to support the local production of fast-moving consumer goods in Mongolia with a new loan to MCS Coca-Cola LLC, a fully Mongolian-owned company.
The loan will finance investments in new, energy efficient glass and hot fill bottling lines which will enable MCS Coca-Cola to expand production of some categories of soft drinks, namely fruit juices and bottled tea. Part of the loan will be used for the balance sheet restructuring, according to EBRD.
MCS Coca-Cola, a leading soft drinks producer, has been producing Coca-Cola branded beverages in Mongolia since 2002. The company, owned by MCS Holding, a diversified Mongolian private group of companies, has cooperated with the EBRD in the past.
The long-term senior loan will include a local-currency portion (US$ 8 million equivalent in tugrik), to help the company hedge against foreign exchange risks.
As part of the EBRD-financed project, the company will also continue to develop distribution channels in remote regions of the vast and sparsely populated country.
The EBRD Head of Office in Ulaanbaatar, Matthieu le Blan, said: “The EBRD is supporting one of the core activities of a well-diversified group meeting the highest standards of corporate governance. It is in line with our strategy of supporting the diversification of the economy by financing competitive sectors and reducing Mongolia’s reliance on imports for consumer’s goods.”
To date, the EBRD has invested about €890 million in various sectors of the Mongolian economy.