IFC is supporting economic growth in Mongolia by investing in private sector companies and initiatives that create jobs, generate government revenues and follow high operating standards. This engagement in Mongolia has in recent years spanned renewable energy, banking, agribusiness, tourism, housing and healthcare.
As part of this development imperative, IFC and MIGA, members of the World Bank Group, have arranged $2.2 billion in debt and guarantees to support the Oyu Tolgoi copper and gold mine, located in the South Gobi desert. Oyu Tolgoi has a projected mine life of at least 40 years and is set to generate thousands of jobs and billions of dollars in government revenues and local spending, while providing high-quality, low-cost ore for industrial and other use.
IFC is providing a total loan facility of $1.2 billion to the project including syndicated debt from BNP Paribas, Australia and New Zealand Banking Group, ING Bank, Société Générale, Sumitomo Mitsui Banking Corporation, Standard Chartered Bank, Canadian Imperial Bank of Commerce, Crédit Agricole, Intesa Sanpaolo, National Australia Bank, Natixis, HSBC Bank, The Bank of Tokyo-Mitsubishi UFJ, KfW IPEX-Bank and Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden. MIGA is providing a guarantee of up to $1 billion to 13 of the same institutions.
The IFC and MIGA support is part of $4.4 billion in project debt financing organized by Oyu Tolgoi LLC – one of the largest one of the largest project finance deals in the history of the metals and mining industry.
IFC is also engaged in monitoring of environmental, social, health and safety aspects of the mine, in line with IFC’s Performance Standards. Environmental and social assessment reports carried out by independent auditors are available on the Oyu Tolgoi project website.