Lat­est round of EBRD fund­ing sees lo­cal juice pro­ducer Vitafit re­ceive 6.5 mil­lion USD


The Euro­pean Bank for Re­con­struc­tion and De­vel­op­ment (EBRD) con­tin­ues its in­vest­ment into the Mon­go­lian pri­vate sec­tor with a new loan of 6.5 mil­lion USD to the bev­er­age pro­ducer and dis­trib­u­tor Vitafit Group. The loan will par­tially fi­nance an equip­ment mod­ern­iza­tion pro­gram aimed at im­prov­ing the qual­ity of the group’s prod­ucts and in­crease its pro­duc­tion ca­pac­ity.

The pro­ceeds of the loan will be used to pur­chase an asep­tic fill­ing line for fruit juice and fresh milk bot­tling to re­place ex­ist­ing old equip­ment and elim­i­nate ca­pac­ity bot­tle­necks. This will al­low the com­pany to ex­pand its prod­uct range and of­fer new prod­ucts of higher stan­dards to Mon­go­lian con­sumers.

Vitafit Group is one of the lead­ing pro­duc­ers and dis­trib­u­tors of non-al­co­holic bev­er­ages in­clud­ing fruit juices, juice drinks, bot­tled wa­ter and iced teas in Mon­go­lia. Vitafit was es­tab­lished in 1997 and started its ac­tiv­i­ties with pro­duc­tion and dis­tri­bu­tion of glass bot­tled soft-drinks for the Ulaan­baatar mar­ket. Vitafit was the one of the EBRD’s first clients in Mon­go­lia and this lat­est loan is the fourth deal between the EBRD and the group since 2007.

“The EBRD is de­lighted to make its fourth loan to the Vitafit Group, as pro­mot­ing pri­vate sec­tor de­vel­op­ment and sup­port­ing en­tre­pre­neur­ial ini­tia­tive is key to the bank's role in Mon­go­lia. This deal will bring new tech­nol­ogy and help to im­prove stan­dards for this key player in the lo­cal non-al­co­holic bev­er­ages mar­ket. This new in­vest­ment reaf­firms the EBRD’s com­mit­ment to Mon­go­lia’s pri­vate sec­tor,” said Philip ter Woort, head of the EBRD’s Res­i­dent Of­fice in Mon­go­lia.

The EBRD’s loan is pro­vided through the bank’s Early Tran­si­tion Coun­tries Ini­tia­tive of which Mon­go­lia is a mem­ber. Mon­go­lia be­came an EBRD coun­try of op­er­a­tions in October 2006 and since the be­gin­ning of its op­er­a­tions in Mon­go­lia, the EBRD has com­mit­ted through debt and eq­uity in­vest­ments more than 465 mil­lion USD to the Mon­go­lian pri­vate sec­tor through 41 projects in sec­tors rang­ing from bank­ing to man­u­fac­tur­ing and from min­ing to agribusi­ness.

The bank has in­ten­si­fied lend­ing since the ap­proval of its new coun­try strat­egy for Mon­go­lia in June 2017.

“The new strat­egy is an im­por­tant achieve­ment in the his­tory of our en­gage­ment in the coun­try and sets out our strate­gic pri­or­i­ties for the next four years. The strat­egy was closely co­or­di­nated with the gov­ern­ment and it will al­low us to make a mean­ing­ful con­tri­bu­tion to­wards build­ing a more re­silient, di­ver­si­fied and com­pet­i­tive econ­omy through progress in re­form, di­ver­si­fi­ca­tion and sus­tain­abil­ity,” Irina Kravchenko, EBRD Head of Mon­go­lia, said at the time.

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