Local currency loan to Tavan Bogd Group for repair centre
The European Bank for Reconstruction and Development (EBRD) is continuing to develop local currency financing in Mongolia by providing a loan in tugrik to a Toyota car dealer, Tavan Bogd LLC.
The company is part of Tavan Bogd Group, a long-standing EBRD client with interests in fast-moving consumer goods, cashmere manufacturing, financial services and trade.
The EBRD loan of 23.4 billion tugrik (€10 million equivalent) will help the company finance the construction of a state-of-the-art Toyota repair and maintenance centre, expand its new car distribution and sales business, and improve energy efficiency.
The project will also benefit from grant financing of €42,000 for an energy efficiency audit provided by the government of Japan. Further grant financing is available for energy efficiency improvements.
Ts. Baatarsaikhan, General Director of Tavan Bogd Group, said: “This is another example of the good cooperation between the EBRD and our Group. We can always rely on the EBRD to understand our business requirements and provide us with the support we need.”
“With this transaction, the EBRD continues to support Mongolia’s private sector. Demand for new cars keeps increasing and Tavan Bogd’s new repair and maintenance centre will serve the country’s growing middle class,” said EBRD Director for Central Asia, Masaru Honma.
To date, the EBRD has invested over US$ 1 billion into the Mongolian economy. The EBRD is currently the largest foreign investor in Mongolia. Nearly all EBRD-financed projects support private sector companies and banks.