The EBRD Injects More Funds to Further Development of SMEs in Mongolia
A senior delegation from the European Bank for Reconstruction and Development (EBRD), led by President Thomas Mirow, paid a visit to Ulaanbaatar during last week for two days.
Mirow was accompanied by Olivier Descamps, Managing Director of EBRD for Turkey, Eastern Europe, the Caucasus and Central Asia, and Paul Vlaanderen, EBRD Board Director for the Netherlands and Mongolia.
The delegation members met with Mongolia’s government officials, held negotiations with the Bank’s existing and potential business partners and signed an EBRD-funded agreement with Mongolian Opportunities Fund, the country’s first private equity fund serving the fast-growing small and medium-sized businesses sector.
During the two-day visit members of the EBRD delegation met with the Mongolian authorities, including President Elbegdorj Tsakhia, the Parliament Speaker Demberel Damdin, Minister of Finance Bayartsogt Sangajav and the Governor of the Bank of Mongolia, Purevdorj Lkhanaasuren.
The EBRD delegation confirmed the reinforcing the Bank’s strong commitment to supporting the economic development of Mongolia with a view to promote and support further private sector development, including micro, small, medium and large local enterprises and ensuring sustainable development of Mongolia’s emerging and important natural resources sector as well as to contribute to strengthening the country’s financial sector.
The US$ 10 million equity contribution by the EBRD to the Mongolian Opportunities Fund which was signed today by EBRD President Mirow and Mandar Jayawant, the Fund’s Managing Partner, is aimed at increasing the availability of equity capital for the growing SME sector in Mongolia
Aspecific feature of the Fund is that it is dedicated to the non-natural resource sector. It will support companies along the mining supply chain operating both in services and manufacturing, food processing and food supply sectors, as well as small scale infrastructure development.
The Fund will make a significant contribution to the balanced growth of the Mongolian economy. It will consider making equity investments in Mongolian SMEs with individual investment ranging from US$ 2.5 million up to US$ 7.5 million.
“With this investment the EBRD will take a 25 per cent stake in Mongolian Opportunities Fund that will play an important role in developing the private equity market in Mongolia. Jointly with our partner and investor International Finance Corporation, the Fund will provide support to the country’s small and medium-sized businesses, especially, at a time when long-term equity financing remains a scarcity in the country,” President Mirow, said during the signing ceremony.
“The Mongolian Opportunities Fund is uniquely positioned to help grow significantly the local companies that it works with, allowing them to maximize their contributions to Mongolia’s economic development. We appreciate the support the EBRD has provided in establishing the Fund and look forward to continuing our fruitful cooperation with the Bank and the Fund’s other investors for the benefit of our companies,” said Jayawant.
The EBRD delegation also held meetings with senior managers and owners of companies that are already the Bank’s clients, as well as with prospective new clients.
In Mongolia the EBRD focuses on developing a sustainable mining sector with sufficient mining supply chain, food processing industry, financial, manufacturing and retail sectors.
Since the beginning of its operations in Mongolia in October 2006, the EBRD has committed about €317 million (US$ 425 million) to 36 projects in various sectors of Mongolia’s economy, with 100 per cent of the projects’ being related to private sector debt and equity investments.
Mirow was accompanied by Olivier Descamps, Managing Director of EBRD for Turkey, Eastern Europe, the Caucasus and Central Asia, and Paul Vlaanderen, EBRD Board Director for the Netherlands and Mongolia.
The delegation members met with Mongolia’s government officials, held negotiations with the Bank’s existing and potential business partners and signed an EBRD-funded agreement with Mongolian Opportunities Fund, the country’s first private equity fund serving the fast-growing small and medium-sized businesses sector.
During the two-day visit members of the EBRD delegation met with the Mongolian authorities, including President Elbegdorj Tsakhia, the Parliament Speaker Demberel Damdin, Minister of Finance Bayartsogt Sangajav and the Governor of the Bank of Mongolia, Purevdorj Lkhanaasuren.
The EBRD delegation confirmed the reinforcing the Bank’s strong commitment to supporting the economic development of Mongolia with a view to promote and support further private sector development, including micro, small, medium and large local enterprises and ensuring sustainable development of Mongolia’s emerging and important natural resources sector as well as to contribute to strengthening the country’s financial sector.
The US$ 10 million equity contribution by the EBRD to the Mongolian Opportunities Fund which was signed today by EBRD President Mirow and Mandar Jayawant, the Fund’s Managing Partner, is aimed at increasing the availability of equity capital for the growing SME sector in Mongolia
Aspecific feature of the Fund is that it is dedicated to the non-natural resource sector. It will support companies along the mining supply chain operating both in services and manufacturing, food processing and food supply sectors, as well as small scale infrastructure development.
The Fund will make a significant contribution to the balanced growth of the Mongolian economy. It will consider making equity investments in Mongolian SMEs with individual investment ranging from US$ 2.5 million up to US$ 7.5 million.
“With this investment the EBRD will take a 25 per cent stake in Mongolian Opportunities Fund that will play an important role in developing the private equity market in Mongolia. Jointly with our partner and investor International Finance Corporation, the Fund will provide support to the country’s small and medium-sized businesses, especially, at a time when long-term equity financing remains a scarcity in the country,” President Mirow, said during the signing ceremony.
“The Mongolian Opportunities Fund is uniquely positioned to help grow significantly the local companies that it works with, allowing them to maximize their contributions to Mongolia’s economic development. We appreciate the support the EBRD has provided in establishing the Fund and look forward to continuing our fruitful cooperation with the Bank and the Fund’s other investors for the benefit of our companies,” said Jayawant.
The EBRD delegation also held meetings with senior managers and owners of companies that are already the Bank’s clients, as well as with prospective new clients.
In Mongolia the EBRD focuses on developing a sustainable mining sector with sufficient mining supply chain, food processing industry, financial, manufacturing and retail sectors.
Since the beginning of its operations in Mongolia in October 2006, the EBRD has committed about €317 million (US$ 425 million) to 36 projects in various sectors of Mongolia’s economy, with 100 per cent of the projects’ being related to private sector debt and equity investments.
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