The provision of a senior loan of up to MNT 8.0 billion (€ 2.4m) to Sain International one of the leading distributors and retailers of consumer electronic devices and home appliances in Mongolia.
The funds will help Sain International: (i) launch new branches in key commercial locations of Ulaanbaatar, Darkhan and Erdenet cities' as well as (ii) finance its working capital needs. New branches will allow the company to showcase its products and services in better quality retail space and to attract new customers.
ETI score: 60
The project will contribute to the framework objectives by supporting the company in the following areas:
Primary quality "Competitive": improve the competitiveness of the Company via operational improvements, namely productivity and profitability.
Secondary quality "Well-Governed": significantly improve the corporate governance practices of the Company through adopting international accounting standards (IFRS).
SAIN INTERNATIONAL LLC
Sain International, established in 1998, is one of the leading distributors and retailers of consumer electronic devices and home appliances in Mongolia. It is 70 per cent owned by a Mongolian entrepreneur Mr Gan-Ochir Tumendemberel and 30 per cent owned by his spouse Mrs Amgalantuya Bayasgalan.
EBRD Finance Summary
MNT 8.0 billion (€ 2.4m) senior secured loan to the Company in two tranches.
Total Project Cost
The total Project cost amounts to MNT 8.0 billion.
Financing Structure - the EBRD offers financing with a tenor longer than what is available from local commercial sources for domestic corporates and it is necessary for the Company to implement its long-term capital expenditure plan;
Standard-Setting - The Company sees significant value in the Bank's participation in improving its corporate governance via acquiring higher financial standards and through the Bank's financial covenants.
Environmental and Social Summary
Categorised B (ESP 2019). The ESDD was conducted on the basis of a review of the E&S questionnaires completed by the Client. The Project is considered to be Paris-aligned for climate-adaptation. The Client will need to comply with the Bank's Performance Requirements and submit annual environmental and social reports to the Bank.
Technical Cooperation and Grant Financing
1. External legal due diligence - TC for the review of current legal standing of the company and draft legal documentation necessary for the project. Total amount is approximately US$ 17,500 with the Company contributing 50 per cent.
Company Contact Information
Ayud Tower 8F, Olympic Street 4, Sukhbaatar District, Ulaanbaatar 14240
PSD last updated
25 Jan 2022
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