EBRD supports Mongolia’s Suu Milk dairy expansion
The five-year loan for the equivalent of $12m comes under the EBRD’s Risk Sharing Facility (RSF) with Xacbank, a Mongolian banking and financial services company.
The EBRD, which will share risk on individual loans made by Xacbank, will provide up to 65% of the loan amount, while Xacbank will contribute the remaining 35%.
The investment will finance the expansion of Suu Milk’s production facilities, including its milk processing plant. It will help procure new curd production equipment, milk collection and delivery trucks, a new ice-cream production line and a new warehouse for raw materials and finished goods.
The loan will also help Suu Milk improve raw milk collection logistics from more than 2,500 nomad herders, half of which are women.
Suu Milk is the oldest dairy company in Mongolia, and was founded in 1958. It sources its milk supplies from 19 collection points in the country, and has more than 400 employees.
The EBRD works in Mongolia to support building a diverse economy by developing the private sector and supporting infrastructure improvements. The bank has invested more than €1.6bn ($1.83bn) in almost 100 projects in the country since it started operations in the country in 2006.