DLF-Tavan Bogd

complete

The proposed transaction envisages i) financing of capex investment for construction of a new state of the art Toyota repair and maintenance centre; ii) balance sheet restructuring to support expansion of its newly started Toyota car distribution and sales business and iii) financing of energy efficiency improvements (together “the project”). The project will set standards of energy efficiency by introducing sustainable energy solutions in the car repair and maintenance centre. The project will improve the client’s current corporate governance standards by implementing a Corporate Governance Action Plan with the aim to increase transparency and the decision-making process. Tavan Bogd LLC is a fully-owned subsidiary of Tavan Bogd Trade LLC, the holding company of the Tavan Bogd Group. The client is active in the automotive sector. The Group is a leading local conglomerate with principal activities in manufacturing, trade and services, tourism, hospitality and real estate. Senior loan of up to EUR 10 million in local currency. Up to EUR 11.7 million. The project has been Categorised B under the EBRD’s Environmental and Social Policy 2008 and due diligence was designed and completed accordingly. Environmental and Social Due Diligence comprised a review of company disclosures, questionnaires, E&S reports and included a visit to the company HQ by the Bank’s E&S Specialists to undertake interviews with key management personnel regarding E&S management.   ESDD identified that the Group has previously been in receipt of DEG financing and has therefore been required to meet the IFC Performance Requirements and an Environmental and Social Action Plan, developed and monitored by a third party independent consultant, is in place.  In addition, the project will have to meet Toyota supplier environmental and safety standards which are often considered best practice. ESDD has confirmed that the current Project under consideration by EBRD is of relatively low risk profile and the implementation of the existing corporate ESAP / supplier requirements at a Project level has ensured that the Project is structured to meet the EBRD’s PRs.   The Project will be monitored by the Bank and the Company will provide annual E&S reports. The project benefited from the energy efficiency audit under the Framework on Energy Performance Assessment and Corporate Policy for Built Environment Projects funded by the government of Japan. Mrs. Hulan.D Executive Vice President Tavan Bogd Group www.tavanbogd.com