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EBRD supports Mongolian logistics company Terra Express www.ebrd.com

The EBRD is supporting the integration of Mongolia into the global economy with the provision of a US$ 7.6 million financial package to Terra Express, a leading local logistics company.

“Integrated” is one the six transition qualities that the EBRD has identified as elements of a successful and sustainable economy. The other qualities are resilient, green, competitive, well-governed and inclusive.

The loan to Terra Express is the first project in the transport sector financed by the EBRD in Mongolia. It will consist of two tranches and support the expansion of the company by restructuring its balance sheet.

Terra Express, established in 2011, is a mining logistics service provider. With the expansion of the multi-billion-dollar Oyu Tolgoi mining project the market demand for the services of Terra Express is expected to increase significantly. In turn, Terra Express plays an important role in the value chain of key exports. The company is preparing itself for this increase with an ambitious investment programme that includes the acquisition of 35 new vehicles.

Ekaterina Miroshnik, EBRD Director for Infrastructure, Russia, Central Asia and Mongolia, said: “We are very pleased to support Terra Express with our financing, which will bolster the company’s investment programme. Improved and intensified logistics will play an important role in the integration of Mongolia into the global economy.”

Irina Kravchenko, EBRD Head of Mongolia, commented: “Mongolia has big potential, and young and innovative private small businesses such as Terra Express are key to realising this promise. This project supports the recently approved EBRD strategy for Mongolia with a focus on infrastructure and private sector development.”

Altanbagana Shiituu, CEO of Terra Express, added: ‘’I look forward to a long and mutually beneficial partnership with the EBRD, helping to expand our capacity and improve our operational safety and environmental standards. This financing will allow Terra Express to target new and exciting market opportunities within the Mongolian logistics sector. We appreciate the EBRD’s commitment to private entrepreneurship in Mongolia and the future development of our company.”

Since the start of its operations in Mongolia in 2006, the EBRD has invested over €1.4 billion in more than 80 projects in various sectors of the country's economy.



Published Date:2017-07-04