AKIPRESS.COM - The European Bank for Reconstruction and Development (EBRD) is continuing to support the local production of fast-moving consumer goods in Mongolia with a new loan to the MCS Coca-Cola LLC, a fully Mongolian-owned company.

The loan will finance investments in energy efficient glass and hot fill bottling lines which will enable MCS Coca-Cola to expand production of some categories of soft drinks, namely fruit juices and bottled tea. Part of the loan will be used for the balance sheet restructuring.

MCS Coca-Cola, a leading soft drinks producer, has been producing Coca-Cola branded beverages in Mongolia since 2002. The company, owned by MCS Holding, a diversified Mongolian private group of companies, has cooperated with the EBRD in the past.

The long-term senior loan will include a local-currency portion (US$ 8 million), to help the company hedge against foreign exchange risks.

The EBRD Head of Office in Ulaanbaatar, Matthieu le Blan, said: “The EBRD is supporting one of the core activities of a well-diversified group meeting the highest standards of corporate governance. It is in line with our strategy of supporting the diversification of the economy by financing competitive sectors and reducing Mongolia’s reliance on imports for consumer’s goods.”