<div><h2>Project Description</h2><p></p><p>Provision of a senior secured loan of USD 15 million to Tavan Bogd LLC (the "Company" or the "Client"). The proceeds of the loan will finance the construction and completion of the Company's new automotive service centre, showroom, and headquarters office building in Mongolia, allowing the Company to support its automotive retail operation and improve its operational efficiency.</p><p></p><h2>Project Objectives</h2><p></p><p>The Project is in line with the EBRD country strategy for Mongolia which priorities include enhancing Mongolia's resilience through a stronger, more diversified and stable private sector.</p><p></p><h2>Transition Impact</h2><p>ETI score: 63</p><p style="margin-top: -13px;"></p><p>The transition impact is expected to derive from contribution to the competitive and green qualities. Toyota vehicles are the most popular car choice in Mongolia, and there is a high demand for maintenance services but only a limited number of official after-service providers is active in the market. The Company's expansion of the after service and maintenance business following the completion of the project will double its number of serviced cars while halving the average queue time. In addition, the Company will improve its service outreach to cars not sold by the Company thereby improving reliable service availability in Mongolia. The construction will achieve EPC A building certification. The Project is expected to result in primary energy savings of 2,139 GJ and avoided emissions of 184 tCO2e.</p><p></p><h2>Client Information</h2><p>TAVAN BOGD LLC</p><p style="margin-top: -13px;"></p><p>Tavan Bogd LLC, incorporated in Mongolia in 1995, is engaged in automotive retail and services. The company is the largest subsidiary of the Tavan Bogd Group one of the largest and well-diversified groups in Mongolia (the "Group").</p><p></p><h2>EBRD Finance Summary</h2><p>										USD 15,000,000.00									</p><h2>Total Project Cost</h2><p>										USD 20,000,000.00									</p><h2>Additionality</h2><p></p><p>The project loan tenor is longer than currently available in the local market. The Bank's additionality stems from the Project achieving energy performance class A according to the national standards which is two grades over the national requirement.</p><p></p><h2>Environmental and Social Summary</h2><p></p><p>Category B (2019 EP). The client is well known to the Bank from previous projects where they have shown the capacity and capability of implementing works in line with the Bank's Performance Requirements. Due diligence on this Project involved a review of assessments carried out on previous Projects, review of findings from site visits carried out as part of monitoring of previous Projects, review of Annual Environmental and Social Reports submitted by the client, and a review of the technical works proposed for the proposed Project. The proposed project involves the construction and completion of a large commercial structure for the sale of automobiles to the public and the general operation of the client's business. The E&amp;S Management Systems that the client has in place are generally appropriate for the proposed works, noting that the scale of the Project is larger than for previous transactions with the client. The most significant E&amp;S risks are related to the construction works and the client will be required to update their contractor management and public safety management procedures, including safeguarding, to reflect the scale of the construction project. These commitments shall be captured in an Environmental and Social Action Plan to be agreed with the client prior to Board Review.</p><p></p><h2>Technical Cooperation and Grant Financing</h2><p></p><p>NA.</p><p></p><h2>Company Contact Information</h2><p>Mr. Turtuvshin Enkhbat<br/>turtuvshin.e@tavanbogd.com<br/>+976-99032389<br/>https://tavanbogd.com<br/>Tavan Bogd Group office, Khan-Uul district, Chinggis Avenue 130, Ulaanbaatar 210136, Mongolia<br/></p><h2>PSD last updated</h2><p>23 Apr 2024</p><div id="docsLinks" style="display:none"><h2>Related material</h2><ul class="relMat"></ul></div><script type="text/javascript">						var projFinderService = '/project-finder-json?1=1';						var projectId = "55110";					</script><h2>	Understanding Transition</h2><p>	Further information regarding the EBRD’s approach to measuring transition impact is available <a href="https://www.ebrd.com/what-we-do/economic-research-and-data/transition-impact.html">here</a>.</p><h2>	Business opportunities</h2><p>	For business opportunities or procurement, contact the client company.</p><p>	For business opportunities with EBRD (not related to procurement) contact:</p><p>	Tel: +44 20 7338 7168<br/>	Email: <a href="mailto:projectenquiries@ebrd.com">projectenquiries@ebrd.com</a></p><p>	For state-sector projects, visit <a href="https://www.ebrd.com/pages/workingwithus/procurement.shtml">EBRD Procurement</a>:<br/><br/>	Tel: +44 20 7338 6794<br/>	Email: <a href="mailto:procurement@ebrd.com">procurement@ebrd.com</a></p><h2>	General enquiries</h2><p>	Specific enquiries can be made using the <a href="https://www.ebrd.com/eform/information-request">EBRD Enquiries form</a>.</p><h2>	Environmental and Social Policy (ESP)</h2><p>	The <a href="https://www.ebrd.com/news/publications/policies/environmental-and-social-policy-esp.html">ESP</a> and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.</p><p>	More information on the EBRD’s practices in this regard is set out in the <a href="https://www.ebrd.com/news/publications/policies/environmental-and-social-policy-esp.html">ESP</a>.</p><h2>	Integrity and Compliance</h2><p>	The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.</p><p>	OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to <a href="mailto:compliance@ebrd.com">compliance@ebrd.com</a>. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.</p><h2>	Access to Information Policy (AIP)</h2><p>	The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the <a href="https://www.ebrd.com/what-we-do/strategies-and-policies/public-information-policy.html">Access to Information Policy</a> page to find out what information is available from the EBRD website.</p><p>	Specific requests for information can be made using the <a href="https://www.ebrd.com/eform/information-request">EBRD Enquiries form</a>.</p><h2>	Independent Project Accountability Mechanism (IPAM)</h2><p>	If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).</p><p>	IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its <a href="https://www.ebrd.com/news/publications/policies/environmental-and-social-policy-esp.html">Environmental and Social Policy</a> or Project-specific provisions of its <a href="https://www.ebrd.com/what-we-do/strategies-and-policies/access-to-information-policy.html">Access to Information Policy</a>; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.</p><p>	Please visit the <a href="https://www.ebrd.com/project-finance/independent-project-accountability-mechanism.html">Independent Project Accountability Mechanism webpage</a> to find out more about IPAM and its mandate; how to <a href="https://www.ebrd.com/eform/IPAM/Request_form">submit a Request</a> for review; or contact IPAM  via email <a href="mailto:ipam@ebrd.com">ipam@ebrd.com</a> to get guidance and more information on IPAM and how to submit a request.</p><p>	 </p></div>

Tavan Bogd

Provision of a senior secured loan of USD 15 million to Tavan Bogd LLC the Company or the Client. The proceeds of the loan will finance the construction and completion of the Company's new automotive service centre, showroom, and headquarters office building in Mongolia, allowing the Company to support its automotive retail operation and improve its operational efficiency.The Project is in line with the EBRD country strategy for Mongolia which priorities include enhancing Mongolia's resilience through a stronger, more diversified and stable private sector.ETI score: 63The transition impact is expected to derive from contribution to the competitive and green qualities. Toyota vehicles are the most popular car choice in Mongolia, and there is a high demand for maintenance services but only a limited number of official after-service providers is active in the market. The Company's expansion of the after service and maintenance business following the completion of the project will double its number of serviced cars while halving the average queue time. In addition, the Company will improve its service outreach to cars not sold by the Company thereby improving reliable service availability in Mongolia. The construction will achieve EPC A building certification. The Project is expected to result in primary energy savings of 2,139 GJ and avoided emissions of 184 tCO2e.TAVAN BOGD LLCTavan Bogd LLC, incorporated in Mongolia in 1995, is engaged in automotive retail and services. The company is the largest subsidiary of the Tavan Bogd Group one of the largest and well-diversified groups in Mongolia the Group.USD 15,000,000.00USD 20,000,000.00The project loan tenor is longer than currently available in the local market. The Bank's additionality stems from the Project achieving energy performance class A according to the national standards which is two grades over the national requirement.Category B 2019 EP. The client is well known to the Bank from previous projects where they have shown the capacity and capability of implementing works in line with the Bank's Performance Requirements. Due diligence on this Project involved a review of assessments carried out on previous Projects, review of findings from site visits carried out as part of monitoring of previous Projects, review of Annual Environmental and Social Reports submitted by the client, and a review of the technical works proposed for the proposed Project. The proposed project involves the construction and completion of a large commercial structure for the sale of automobiles to the public and the general operation of the client's business. The ES Management Systems that the client has in place are generally appropriate for the proposed works, noting that the scale of the Project is larger than for previous transactions with the client. The most significant ES risks are related to the construction works and the client will be required to update their contractor management and public safety management procedures, including safeguarding, to reflect the scale of the construction project. These commitments shall be captured in an Environmental and Social Action Plan to be agreed with the client prior to Board Review.NA.Mr. Turtuvshin Enkhbatturtuvshin.etavanbogd.com+976-99032389https:tavanbogd.comTavan Bogd Group office, Khan-Uul district, Chinggis Avenue 130, Ulaanbaatar 210136, Mongolia23 Apr 2024Further information regarding the EBRD's approach to measuring transition impact is available here.For business opportunities or procurement, contact the client company.For business opportunities with EBRD not related to procurement contact:Tel: +44 20 7338 7168Email: projectenquiriesebrd.comFor state-sector projects, visit EBRD Procurement:Tel: +44 20 7338 6794Email: procurementebrd.comSpecific enquiries can be made using the EBRD Enquiries form.The ESP and the associated Performance Requirements PRs set out the ways in which the EBRD implements its commitment to promoting "environmentally sound and sustainable development".  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders' concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project's environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.More information on the EBRD's practices in this regard is set out in the ESP.The EBRD's Office of the Chief Compliance Officer OCCO promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to complianceebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.Specific requests for information can be made using the EBRD Enquiries form.If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful e.g. through the Client's Project-level grievance mechanism or through direct engagement with Bank management, individuals and organisations may seek to address their concerns through the EBRD's Independent Project Accountability Mechanism IPAM.IPAM independently reviews Project issues that are believed to have caused or to be likely to cause harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipamebrd.com to get guidance and more information on IPAM and how to submit a request.

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