EBRD Grants Mongolia’s First Sustainability-Linked Loan to Drive Green Initiatives at MCS Coca-Cola

EBRD Grants Mongolia’s First Sustainability-Linked Loan to Drive Green Initiatives at MCS Coca-Cola

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) has extended its first sustainability-linked loan in Mongolia, providing US$ 51.7 million to MCS Coca-Cola, the country’s leading soft drink producer and distributor. This loan, supported by the FINTECC program and the Japan-EBRD Cooperation Fund, will help MCS Coca-Cola modernize its bottling lines, invest in electric vehicles and equipment, and adopt energy-efficient technologies such as rooftop solar panels. The project aims to improve plastic packaging recycling and water efficiency, with goals of using 51% recycled PET in packaging and achieving 100% plastic waste collection by 2030.

(PRESS RELEASE) LONDON, 9-Sep-2024 — /EuropaWire/ — In a major development for Mongolia’s environmental and industrial landscape, the European Bank for Reconstruction and Development (EBRD) has granted a sustainability-linked loan worth US$ 51.7 million to MCS Coca-Cola, the country’s largest producer and distributor of soft drinks. This financing marks the first internationally recognized sustainability-linked loan in Mongolia and sets an important precedent for other businesses aiming to integrate sustainability into their operations.

The loan, aimed at supporting MCS Coca-Cola’s green initiatives, will be used to upgrade bottling technology, renovate packaging systems, and invest in eco-friendly distribution solutions. Plans include the installation of a modern aseptic bottling line, renovation of water bottling equipment, and expansion of the company’s fleet of electric trucks and forklifts. MCS Coca-Cola also aims to enhance energy efficiency by building a state-of-the-art garage and adding solar panels to its facilities.

This sustainability-focused investment is part of EBRD’s broader efforts, supported by its Finance and Technology Transfer Centre for Climate Change (FINTECC) program, which encourages the adoption of technologies aimed at mitigating climate change. Additional funding comes from the Japan-EBRD Cooperation Fund, further strengthening the project’s environmental and technological ambitions.

Looking ahead, MCS Coca-Cola plans to significantly ramp up its environmental responsibility efforts, targeting a 51% use of recycled PET materials in its plastic packaging and a 100% collection rate for plastic waste by 2030. These improvements will contribute to a more sustainable business model while promoting broader corporate responsibility across Mongolia.

Since its entry into Mongolia, the EBRD has invested €2.41 billion across 147 projects, with nearly 90% of funds allocated to private-sector companies. This loan represents a key milestone for the nation’s private sector as it navigates the global transition toward sustainability and green technology adoption.

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SOURCE: EBRD