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EBRD extends first corporate loan in Mongolia
€1.5 million credit supports private sector in local beverages industry
The EBRD is supporting the development of the private sector in Mongolia’s beverages industry with a €1.5 million loan to Nomun Inter Trade LLC, the Bank’s first credit to the Mongolian corporate sector.
Nomun is a leading non-alcohol drinks company in Mongolia and producer of the well-established Vitafit and Goyo fruit juice brands as well as other fruit drinks, carbonated soft-drinks and bottled water.
The proceeds of the loan will be used to support the company’s continuing growth and to finance its modernisation and expansion programme. The company plans to build a greenfield fruit juice and water bottling factory using state-of-the-art filling technology. This will allow for the expansion of the product range and offer new products of higher standards to Mongolian consumers who will benefit from better quality and bigger choice.
In addition, the EBRD loan will assist the company to gradually introduce IFRS reporting, establish independent audits and achieve best practice corporate governance. This is expected to have a demonstration effect on other local companies and prepare them for the establishment of business relations with international financial investors.
John Chomel-Doe, EBRD Director for Mongolia, said that the Bank was “delighted to make our first loan to a Mongolian corporate entity, as promoting private sector development and supporting entrepreneurial initiative is key to the Bank's role in Mongolia. This is a deal which will bring new technology and help to improve standards for this key player in the local non-alcohol beverages market.”
Nomun Inter Trade LLC is a part of the Vitafit Group of companies that produce and distribute beverages and other consumer products. The EBRD’s loan is provided through the Bank’s Early Transition Countries Initiative of which Mongolia is a member. Mongolia became a country of operations of the EBRD in October 2006.
To-date in the agribusiness sector alone, the EBRD has committed €4.9 billion in 341 projects across central and Eastern Europe and the Commonwealth of Independent States.
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