- US$ 51.7 million EBRD loan to MCS Coca-Cola
- First internationally accepted sustainability-linked loan in Mongolia
- Project supported by FINTECC and Japan
The European Bank for Reconstruction and Development (EBRD) is helping companies in Mongolia to address industrial and environmental challenges by providing its first sustainability-linked loan in the country to MCS Coca-Cola, a leading domestic producer, bottler and distributor of soft drinks. This will help to set an important sustainability benchmark for businesses in Mongolia regardless of their size and nature.
The EBRD’s long-term loan of up to US$ 51.7 million (€ 47.7 million), extended under the Bank’s sustainability-linked loan framework, will help MCS Coca-Cola install a modern aseptic bottling line and renovate its water bottling and other packaging equipment.
The funds will also support the MCS Coca-Cola’s green investments into the expansion of its fleet of distribution E-trucks, the acquisition of electric forklifts, the construction of an energy efficient garage and the installation of rooftop solar panels.
The loan is supported by the EBRD’s Finance and Technology Transfer Centre for Climate Change (FINTECC) programme designed to transfer technology in the area of climate change mitigation and adaptation and financed by the Global Environment Facility Trust Fund. It is also supported by grant funding available through the Japan-EBRD Cooperation Fund.
After the completion of the project MCS Coca-Cola is planning to significantly improve the collection and recycling of plastic packaging and the efficiency of water use. It is expected that by 2030 at least 51 per cent of company’s plastic packaging will be made from recycled PET materials, plastic waste collection rate will increase to 100 per cent.
To date, the EBRD has invested €2.41 billion in Mongolia’s economy through 147 projects. Almost 90 per cent of these funds have been channelled to support private-sector companies.