Provision of a senior secured loan of up to USD 10 million to Tavan Bogd LLC. The loan will finance the company's capex expansion (construction of a new building which includes a showroom and a warehouse) and working capital needs.
By investing in the new, state-of-the-art energy efficient buildings, the project is expected to (1) enhance the company's competitiveness through improving its customer service (including new "trade-in" offer) and overall customer experience, and (2) lower operational costs and decrease its environmental footprint as the new building meets energy performance class B, which is one class above the national requirement and deliver at least 20 pe cent energy savings.
ETI score: 62
The project will contribute to the framework objectives by supporting the company in the following areas: Competitive and Green.
TAVAN BOGD LLC
Tavan Bogd has been an official dealer of Toyota passenger cars in Mongolia since 2013. The company is a subsidiary of Tavan Bogd Group - a succesfull and well-diversified group in Mongolia.
EBRD Finance Summary
Total Project Cost
The EBRD is offering a 36-month tenor for working capital financing, which is not available in the local financial market. In addition, the project will set new standards for higher energy efficiency of the building.
Environmental and Social Summary
Categorised C: ESDD has been undertaken by ESD and included a review of previous reporting and follow up E&S questionnaires. ESDD has confirmed that the Borrower represents a low E&S risk profile and that existing operations are meeting national legislative requirements. An ESAP is not required for this assignment, however, the Borrower will be required to report E&S performance on an annual basis.
Technical Cooperation and Grant Financing
Company Contact Information
Mr. Purevlkham Enkhtur
+976 9910 9380
Suite 1001, 10th level, Khan Bank Tower, Stadion Orgil-1, Chingis Avenue 6, 15th khoroo, Khan-Uul District, Ulaanbaatar City, Mongolia
PSD last updated
12 Jul 2021
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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More information on the EBRD’s practices in this regard is set out in the ESP.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email email@example.com to get guidance and more information on IPAM and how to submit a request.