IFC Support to MCS Will Help Strengthen
Industrial and Manufacturing Base in Mongolia
In Ulaanbaatar:
Weichuan Xu
Phone: +976 11 312694
E-mail: wxu@ifc.org
In Hong Kong:
Andrew Mak
Phone: +852 2509 8110
E-mail: amak@ifc.org
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.
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