Provision of a senior secured loan of up to USD 3 mln to Tavan Bogd International TBI) LLC for working capital financing.
The EBRD funding will support working capital needs related to: (i) increase in sales turnovers; and (ii) advanced sourcing of certain products due to increased market volatility related to Covid-19 as well as an increase in distribution and storage capacity.
ETI score: 74
The transition impact is expected to derive from its contribution to the inclusive and resilience qualities. The project will focus on integrating people with disabilities through a dedicated "Disabilities Action Plan". The plan will serve to support TBI to undertake an external audit of its human resources policies aimed at identifying opportunities and building capacity towards improving training, recruitment and retention of workers with disabilities. The EBRD financing will provide liquidity at times of adverse market conditions, e.g. negative impact of Covid-19 crisis.
TAVAN BOGD INTERNATIONAL LLC
Established in 1998, Tavan Bogd International is the largest FMCG distributor in Mongolia with over 380 employees. The company is a subsidiary of the Tavan Bogd Group - one of the succesfull and well-diversified groups in Mongolia.
EBRD Finance Summary
Total Project Cost
Tenor of the loan for working capital financing is 36 months, which is not available by locla financial institutions.
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
Post signing TC to assist in setting up a dedicated "Disabilities Action Plan". TC amount will be up to USD 65,000 , subject to final calibration by the Bank and the Client.
Company Contact Information
Mr. Bolorbat Otgonbaatar
Tavan Bogd Group office, Khan-Uul district, Chinggis Avenue 130, Ulaanbaatar 210136, 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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Independent Project Accountability Mechanism (IPAM)
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