Mongolian Independent Fuel Distributor to Redevelop Network
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Thursday, 30 October 2008 |
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The EBRD is investing up to $47.5 million in the Magnai Trade petrol
stations group in Mongolia in a transaction that will support the
downstream petroleum sector in the country and boost competition in the
industry.
Magnai Trade will use the EBRD funds to finance the construction of
new depots and gas filling stations, including convenience stores and
cafeterias. The private group is a leading Mongolian importer and
distributor of petroleum products and has developed a large fuel
wholesale and retail network with a significant market share in the
local Mongolian market.
The EBRD’s investment will be in the form of an equity stake of 25
percent and one share as well as a credit to the company. Further funds
will be put aside for the participation in potential future capital
increases so that the EBRD’s stake is not reduced.
The funding will support Magnai Trade’s drive to establish itself
further as a successful domestically-grown company, able to plan its
operations over the medium term and compete successfully in the
domestic market.
The EBRD investment will also enable the company to introduce advanced
management information systems, offer new services and products and
improve its Environment and Health and Safety as well as corporate
governance standards. Such enhanced corporate governance will have an
important demonstration effect for increased transparency generally in
the Mongolian corporate sector.
EBRD First Vice President Varel Freeman, signing the project in
Ulaanbaatar, said, “This is a very important investment for the EBRD
and for Mongolia. The project will help a strong domestic company
improve its standards and offer new products and services in Mongolia.
We are particularly pleased to support its growth as an independent
private operator in Mongolia.”
Mr Ganzorig, President of Magnai Trade, said: ‘We are very
pleased to work with the EBRD in a long-term cooperation, and in
particular to have EBRD as a long-term shareholder in our company’. The
EBRD started investing in Mongolia in October 2006 and up to the end of
September this year had provided financing of $101.7 million across a
broad spectrum of sectors including financial institutions,
non-alcoholic beverages, retail mining and mining services. This is the
EBRD’s fourth investment in the natural resources sector of Mongolia.
PetrolWorld 231008
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