AKIPRESS.COM - Mongolian dairy consumers and producers will benefit from a five-year local currency loan for a US$12 million equivalent to the long-established company Suu JSC, also known as Suu Milk, for the expansion of its business, the EBRD said.
The facility 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 per cent of the loan amount, while Xacbank will contribute the remaining 35 per cent.
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 help Suu Milk improve raw milk collection logistics from over 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 €1.6 billion in almost 100 projects in the country since it started operations in the country in 2006.