Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

13 Nov 2012



PSD disclosed:

21 Jun 2012

Project Description

The EBRD is considering providing of up to USD 56 million syndicated loan to APU Joint Stock Company, a company organized and operating in Mongolia. The proceeds of the loan will be applied to finance:

(i) a new brewery
(ii) construction of a modern logistics centre
(iii) new dairy factory, (iv) new PET filling line
(v) working capital needs of the company and
(vi) partly restructure the existing debt portfolio.

Transition Impact

The dairy sector in Mongolia is still in a nascent stage and the Project will lead to the development of a milk production supply chain with local herders, promoting higher product quality standards. The transaction will also have a demonstration effect arising from construction of fresh milk based dairy production facilities in Mongolia as well as a modern logistic centre. This will result in an improvement in both overall industry standards and company’s operations.

The Client

APU Joint Stock Company is the largest beverage company in Mongolia. APU, established in 1924, was one of the first companies privatised in 1990s and is listed on the Mongolian Stock Exchange.

EBRD Finance

Up to USD 57 million senior secured loan.

Project Cost

Approximately USD 108 million.

Environmental Impact

The Project has been categorised B in accordance with the EBRD Environmental and Social Policy. Environmental and social due diligence (ESDD) has been undertaken by the Bank’s Environment and Sustainability Department based on a review of the Company’s corporate management systems; relevant information provided by the Company; and a site visit and discussions with the Company’s personnel to evaluate the current operational performance and the risk management plans for the planned investment programme.

The Company has an advanced supply chain management system which adheres to international standards; it undertakes regular audits of its suppliers which drives improvements in risk management standards throughout the supply chain in Mongolia. The Company itself is subject to audits by its own customers (Coca Cola for example) to evaluate that the Company operations remain at the exacting standards required by these customers. The ESDD identified that the current performance in regard to environmental and health and safety risk management are operating at a high level, in line with the Bank’s requirements, and that the Company plans to apply these standards to the planned investment programme. The investment programme itself includes certain aspects with direct environmental benefits, such as the energy recovery plans for the brew-house operations.

An Environmental and Social Action Plan (ESAP) is being developed which will allow the Company to achieve compliance with national regulations and the Bank’s PRs. Specifically, the ESAP requires the Company to implement measures regarding contractor performance at the construction sites and develop a Stakeholder Engagement Plan for the Project.

The Bank will monitor the Company’s environmental and social performance and implementation of the ESAP through annual E&S reports.

Technical Cooperation


Company Contact

Ms. Ariunsan Chadraabal
Head of International Affairs Department

Email: ariunsan@apu.mn
Tel: (976-11) 344554
Fax: (976-11) 343063


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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