The European Bank for Reconstruction and Development (EBRD) is extending a US$65mn loan to Mongolian company Senj Sant as part of a new financing package that includes equity investment.

EBRD’s total financing to Senj Sant, which is owned by the Monpolymet Group, now stands at US$85mn, having signed a US$20mn equity deal in May 2013.

The financing will fund the construction, commissioning and operation of a greenfield dry process cement plant, built to meet rising demand generated by Mongolia’s rapidly growing economy.

Monpolymet Group CEO Munkhnasan Narmandakh comments on the financing: “The EBRD’s long-term finance, including equity, not only helps us build the first cement plant in Mongolia using environmentally-friendly dry process, but also supports the company in raising business standards to international levels.”

The dry process used at the facility is reportedly the most technologically-advanced and environmentally safe means of production available.

“This project represents yet another step towards the diversification of Mongolia’s economy,” says EBRD first vice-president Phil Bennett.

“Building on the strong foundation of our previous engagement with Senj Sant, we are proud to continue financing this significant industrial greenfield investment. It directly supports and nurtures the development of the private sector in a relatively underdeveloped industry in Mongolia.”