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, MrOdjargalJambaljamts 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.

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).

The proceeds from the proposed Project will be deployed within Mongolia.

 This is a Category A project according to IFC’s 2012 Policy on Environmental and Social Sustainability. IFC’s review concluded that the E&S risk and impacts associated with the proposed investment (especially the farm, cattle feedlot, slaughterhouse/meat processing/packing facility) includes the introduction of concentrated livestock feeding operation and intensification of agricultural production with the potential to negatively impact the quality/quantity of local water resources which include an extensive network of shallow community water wells around the farms as well as surface water of the Murun river used by local settlements and nomadic herding communities as a source for human consumption and cattle herds. There are also potential E&S risks related to the calves’ supply chain due to sourcing from key biodiversity areas to the project. Another issue considered was the management of potential cumulative E&S impacts.