MCS Agri (IFC-47487)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Mongolia
Geographic location where the impacts of the investment may be experienced.
Specific Location
Chandgana valley, Kherlen soum/district, Khentii province
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 16, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
MSC Holding LLC
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Construction
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 60.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 60.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 60.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Community Documents
Campaign Documents
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Dec 7, 2024

Disclosed by Bank Jul 24, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated on the project disclosure page, the proposed IFC investment is corporate loan of up to US$60m to MCS Group with specific use of proceeds for the:
(i) construction of a 24-storey commercial building in central Ulaanbaatar (known as ICC Tower); and
(ii) agricultural and meat production operations at Metagro (a fully owned subsidiary of MCS), including existing farm, cattle feedlot, and slaughterhouse/meat processing/packing facility.

The investment to Metagro will be the first IFC investment in the agriculture sector in Mongolia. Metagro’s operational footprint includes:
(i) 10,200ha of arable land divided in three plots (field 1, 2 and 3) of 4,000 ha; 4,000ha and 2,200ha, including 100ha of irrigated (central pivot irrigation) with a proposed expansion to 400ha;
(ii) 50ha cattle feedlot, hay storage, feed silo, feed mixing areas, slaughterhouse/meat processing/packing facility of 10,000 to 15,000 cattle heads per year capacity that includes an on-site wastewater treatment (WWT) plant and a rendering plant next to the cattle feedlot;
(iii) homesteads, greenhouses, irrigation pond, grain silos and maintenance workshop area.

The farm, cattle feedlot, slaughterhouse/meat processing/packing, and all ancillary facilities are located in the Chandgana valley, Kherlen soum/district, Khentii province situated 330 km east from Ulaanbaatar. This would be IFC’s sixth investments in MCS.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The proposed IFC investment of up to US$60 million is comprised of a US$40.5 million A Loan and US$19.5 million syndicated loan from the Managed Co-Lending Portfolio Program (MCPP).

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the IFC, MCS is one of the largest diversified business groups in Mongolia operating in (i) civil engineering, (ii) healthcare, (iii) information technologies, (iv) maintenance and security services, (v) agriculture, and (vi) real estate development. MCS also owns a 31% share in Mongolian Mining Corporation which is listed on the Hong Kong Stock Exchange.

MCS was founded in 1993 by two brothers, Mr Odjargal Jambaljamts and Mr Od Jambaljamts. The founders own 88% of the company, and the remaining shares are owned by existing and former senior management. MCS Group has been a client of IFC since 2008.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
MCS Holding LLC Client Industry and Trade owns Metagro LLC Subsidiary Agriculture and Forestry

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Client - Metagro LLC:

Solongo Batbekh - Chief Executive Officer
Phone: (+976) 7777-9070
Email: solongo.b@metagro.mn
Address: Shangri-La Office, 19ª Olympic Street, SBD-1, Ulaanbaatar, Mongolia
Website: www.mcs.mn/en

Local Access for Project Documentation:

Central Park, 8th floor, Sukhbaatar District-1, Ulaanbaatar city 14200, Mongolia

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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How it works