The European Bank of Reconstruction and Development (EBRD) has extended its first syndicated loan in Mongolia, with a US$13mn credit to MCS Coca-Cola, a privately-owned Mongolian soft drinks producer. The funds will be used to help expand its production capacity, increase its range of products and improve its waste-water treatment and recycling processes.

MCS holds the franchise for Coca-Cola products in Mongolia, and is a wholly-owned subsidiary of MCS Holding, one of the largest private companies in Mongolia.

The facility comprises of a US$7mn tranche from the EBRD, and a further US$6mn portion syndicated out to Cordiant, a fund manager of emerging market private sector investments.

The EBRD hopes that this facility will demonstrate the advantages to the sector of gaining access to long-term commercial funds via this type of financing.

“Supporting this expansion will help the company expand the choice of products for local consumers and also make a difference to the environment,” comments John Chomel-Doe, the EBRD’s director for Mongolia.

The deal marks EBRD’s third investment in the Mongolian agribusiness sector, since the bank began investing in the country in 2006. To date, the EBRD has invested a total of €59.7mn in Mongolia.