Ulaanbaatar, Mongolia, May 31, 2008
—IFC, a member of the World Bank Group, today announced that it has invested in MCS Holding Limited to help develop the company’s soft drink production, garment manufacturing, and property development operations. This is expected to help strengthen Mongolia’s industrial and manufacturing base and create jobs.
The $30 million long-term loan represents an important expansion of IFC’s activities in Mongolia. Half of the amount is convertible into an equity stake in MCS. This option to convert underlines the company’s long-term prospects. IFC will also work with MCS to enhance transparency and corporate governance and implement IFC’s social and environmental standards.
“This loan will strengthen our capital, help us realize our full potential, and put us in a better position to undertake long-term investment projects. We hope that this will send a signal to other investors that Mongolia’s private sector is robust and attractive,” said J. Odjargal, CEO of the MCS Group.
“As a corporate leader in Mongolia, MCS is an important strategic partner. It has the management potential and business strategy necessary to succeed,” said Jyrki Koskelo, IFC Vice President for Africa, Global Financial Markets, and Funds. “We are pleased to provide financing in a market where long-term loans are scarce. This investment also helps diversify IFC's portfolio in the country.”
IFC’s efforts in developing Mongolia’s private sector have helped broaden access to finance for local entrepreneurs and families. To expand its investment and advisory services portfolio, this year IFC has placed two new officers in Ulaanbaatar, the capital city.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit
www.ifc.org
.
About MCS Holding Limited
Founded in 1993, MCS Holding Limited is one of Mongolia’s leading enterprises, with 10 subsidiaries in several business sectors, including energy, infrastructure, information technologies, soft drinks, and property development. It is one of the country’s largest private sector companies in terms of number of employees.
