Ulaanbaatar, Mongolia, June 24, 2011—IFC,
a member of the World Bank Group, will provide a $7.5 million equity investment
to Mongolia Opportunities Fund I L.P., the first private equity fund in
the country focused on providing small and medium firms much-needed capital
and expertise to help them grow and create jobs.
Despite strong growth prospects, small
and medium enterprises in Mongolia find it difficult to obtain financing
because most investments go toward large mining projects. The $75 million
fund will provide capital to companies, such as those involved in agribusiness
and those along the mining supply chain but are not directly engaged in
mineral extraction activities. The fund will also provide quality management
support to these firms.
“IFC’s investment in the fund will
deliver a strong development impact in Mongolia as it will promote economic,
financial, and private sector development as well as ensure social and
environmental sustainability among small and medium enterprises,” said
Mandar Jayawant, Managing Director of Mongolia Opportunities Fund. “This
is a good example of how an investment can bring development as well as
IFC will also help the fund adopt best
practices in transparency and corporate governance as well as environmental
and social standards.
“Small and medium enterprises, representing
over 99 percent of all Mongolian firms, are important for job creation
and for a diversified economy. IFC’s investment will not only provide
capital to these businesses but will also support about 400 new jobs and
the development of the supply chain around the mining sector,” said Hyun-Chan
Cho, IFC Country Manager for China and Mongolia.
IFC played a strong catalytic role in
mobilizing institutional investors to support the fund. IFC’s early involvement
during the formation of the fund helped it attract interest from other
development finance institutions and several private institutional investors.
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in developing countries. We create opportunity for people to escape poverty
and improve their lives. We do so by providing financing to help businesses
employ more people and supply essential services, by mobilizing capital
from others, and by delivering advisory services to ensure sustainable
development. In a time of global economic uncertainty, our new investments
climbed to a record $18 billion in fiscal 2010. For more information, visit