The EBRD is continuing to support private sector companies in Mongolia with a US$ 12 million senior loan to support Nomintav Trade LLC, one of the country’s leading retailers for fast-moving consumer goods, apparel and consumer electronics, a subsidiary of Nomin Group.
This is the EBRD’s first transaction with this well-diversified group in Mongolia with operations in retail, trading, manufacturing, construction and financial services.
Nomintav Trade will use the funding to fulfill its long-term expansion plan into the region, which will see the company open six wholesale and retail stores in the capital, Ulaanbaatar, and in the regions.
The new stores will not only serve growing demand for consumer goods outside of the capital but will also create new jobs. In addition, the EBRD will provide grants for technical cooperation, energy audits and project preparation.
The retail market in Mongolia is centered on food, clothing, home goods and electronics, and Nomin Group plays a significant role in each of these sectors.
“The EBRD financing will enable us to expand our retail and wholesale operations. In an effort to contribute to reducing air pollution in and around Ulaanbaatar, we will also install solar panels in our new stores, thus demonstrating the potential of renewable energy. And of course new jobs and better access to goods that people need we will be contributing to the Mongolian economy as a whole,” said Mr. Bayarsaikhan Shagdarsuren, Chairman of Nomin Group.
“The EBRD is proud to support a company within Nomin Group – the fastest-growing, leading consumer goods retailer in Mongolia that is responding to opportunities brought about by consumer demand. As the largest financial investor in Mongolia, we aim to support dynamic domestic companies such as Nomintav Trade,” said Masaru Honma, EBRD Director for Central Asia.
Since the beginning of its operations in Mongolia in 2006, the EBRD has invested over €1 billion in over 64 projects in different sectors of the economy, mobilizing an additional €1.4 billion from other sources of financing. All of the EBRD investment in Mongolia has been in the private sector.