EBRD lends MNT 143 billion to Tavanbogd Construction Machinery

• EBRD providing loan of up to MNT 143 billion to Tavanbogd Construction Machinery
• Company to build new energy and resource-efficient industrial facility
• Project supported by EBRD’s FINTECC programme

The European Bank for Reconstruction and Development (EBRD) is providing a local currency loan of up to MNT 143 billion (€34.9 million equivalent) to Tavanbogd Construction Machinery (TCM), the official dealer of Hitachi heavy machinery in Mongolia.

The loan will help the subsidiary of Tavanbogd Group – and a Bank client since 2009 – to finance the construction of a modern maintenance workshop, a warehouse and office space. The funds will also support TCM’s TBC’s working capital needs.

TCM’s new industrial facility will have a range of energy-efficient components such as high-performance insulation, LED lighting, natural ventilation systems and heat pumps. The project will be supported by an incentive grant provided through the EBRD’s Finance and Technology Transfer Centre for Climate Change (FINTECC) programme.

The EBRD has invested more than US$ 3.2 billion (€2.8 billion) in Mongolia through 171 projects. Around 90 per cent of this funding has been used to support private-sector companies.