GS25 Digital Concept

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The provision of a senior secured long-term loan of up to US$ 18 million to Digital Concept LLC. The proceeds of the loan will be used to support the expansion of the South Korean GS25 format stores in Mongolia and the construction of a food factory.

Project ID 53735

Status Disbursing

Location

Mongolia

Business Sector

Food and Agribusiness

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Batbayar Narandelger
batbayar.n@digitalconcept.mn
+97691117968
www.digitalconcept.mn
Digital Concept LLC Khan Bank Tower, 6F Khan-Uul district Ulaanbaatar Mongolia

Project ID 53735

Status Disbursing

Location

Mongolia

Business Sector

Food and Agribusiness

Notice Type

Private

Approval Date

25 Jan 2023

Disclosure date

22 Dec 2022

GS25 Digital Concept (Mongolian) (PDF, 0.53MB)

Project description

Project objectives

The loan will finance the company's investment programme aimed at the expansion of convenience stores, and the construction and equipping of a new food factory.

Client information

DIGITAL CONCEPT LLC

Established in 2020, Digital Concept LLC is a Mongolian convenience store chain operator of the South Korean brand GS25 convenience stores. The company is a joint venture between Shunkhlai Holding LLC, APU JSC and GS Retail Co. Ltd. of Korea.

EBRD Finance Summary

USD 18,000,000.00

Total project cost

USD 40,500,000.00

Additionality

The EBRD is offering a financial structure that is rarely available in the market. The Bank's additionality stems from the support delivered on setting higher economic inclusion standards in cooperation with local educational providers. The EBRD will also draw on its experience on energy and resource efficiency to support the Company efforts in setting higher building standards. An investment grant of up to EUR 242k under the Energy Efficiency Management Systems Programme ("EEMS Programme") will also be provided as part of the transaction to support the implementation of a comprehensive resource management system within the retail store network which will reduce food waste and GHG emissions from products delivery. The Client also makes use of the EBRD's expertise to deliver Gender-sensitive training and increase women's opportunities.

Environmental & Social Summary

Categorised B (ESP 2019) and Low Medium Risk. The Client (Digital Concept) is a Mongolian convenience store chain operator and is a new client of the Bank. Given the nature of the loan, environmental and social due diligence was conducted at a corporate level and covered all activities of the Company. ESDD was undertaken internally by ESD via a questionnaire. No significant, unidentified risks were revealed through the due diligence process. The review demonstrated that the Company's management of E&S issues is generally focused on national compliance and is not done within the context of structured management systems. The ESAP focuses largely on permitting and management systems and includes actions for the Company to further develop the H&S management system to include: i) an environmental & social management plan; ii) integrate E&S considerations into the supply chain; iii) contractor management; iv) develop traffic and road safety; v) identify actions on climate resilience and adaptation; vi) improve the HR related policy and vii) develop a corporate level stakeholder engagement plan. The ESAP is structured to ensure Company compliance with the Bank's Performance Requirements and has been agreed with the Client. The Company will be required to provide annual E&S reporting on the implementation of the ESAP.

Technical Cooperation and Grant Financing

The Project will benefit from the following Technical Cooperation assignments:

- Project Preparation Support Programme funded by the JECF to partially cover the legal due diligence costs of up to US$ 67,000; and

- Inclusive TC of up to € 60,000 under the Inclusion Technical Assistance Framework to partially support the setting up of the Training Academy programme of Digital Concept LLC.

Company Contact Information

Batbayar Narandelger
batbayar.n@digitalconcept.mn
+97691117968
www.digitalconcept.mn
Digital Concept LLC Khan Bank Tower, 6F Khan-Uul district Ulaanbaatar Mongolia

Implementation summary

PSD last updated

22 Dec 2022

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, 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 the 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 and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

Our story

How we invest in changing lives

What we offer for businesses

Search

GS25 Digital Concept

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

Implementation summary

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)