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EBRD supports Mongolian retail sector
Equity investment finances two hypermarkets in Ulaanbaatar
The EBRD is supporting the development and modernisation of the retail sector in Mongolia by taking a stake valued at up to $8.9 million in the the Monkhangai Group, which owns Minii Delguur, the country’s largest supermarket chain,.
The proceeds from the investment will be used to fund the group’s expansion, with the construction of two new hypermarkets in Ulaanbaatar, the Mongolian capital.
The investment, involving a stake of up to 30 percent of the company’s capital, will introduce the hypermarket format to Mongolia and provide consumers with a greater variety of competitive and affordable products in a hygienic retail environment.
It will also result in improvements in corporate governance, transparency and operational efficiency at Monkhangai, a successful group that already operates 15 supermarkets in Ulaanbaatar.
Gilles Mettetal, the EBRD’s Director for Agribusiness said: “With this first investment in the retail sector in Mongolia, we aim to contribute to a real improvement in the retail environment in the country and to improve the experience for consumers”
This is the EBRD’s third equity investment in Mongolia, which became a country of EBRD operations in October 2006.
The Bank’s first investment in the country was a microfinance loan to support the development of small Mongolian entrepreneurs.
In the agribusiness sector, the EBRD has committed €4.9 billion in 348 projects across all of its countries of operations.
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