MCS Agri

active

The proposed IFC investment is corporate loan of up to US$60m to MCS Group with specific use of proceeds for the (i) construction of a 24-storey commercial building in central Ulaanbaatar (known as ICC Tower) and (ii) agricultural and meat production operations at Metagro (a fully owned subsidiary of MCS), including existing farm, cattle feedlot, and slaughterhouse/meat processing/packing facility (the “Project”). The investment to Metagro will be the first IFC investment in the agriculture sector in Mongolia. Metagro’s operational footprint includes (i) 10,200ha of arable land divided in three plots (field 1, 2 and 3) of 4,000 ha; 4,000ha and 2,200ha, including 100ha of irrigated (central pivot irrigation) with a proposed expansion to 400ha; (ii) 50ha cattle feedlot, hay storage, feed silo, feed mixing areas, slaughterhouse/meat processing/packing facility of 10,000 to 15,000 cattle heads per year capacity that includes an on-site wastewater treatment (WWT) plant and a rendering plant next to the cattle feedlot; (iii) homesteads, greenhouses, irrigation pond, grain silos and maintenance workshop area. The farm, cattle feedlot, slaughterhouse/meat processing/packing, and all ancillary facilities are located in the Chandgana valley, Kherlen soum/district, Khentii province situated 330 km east from Ulaanbaatar.  This would be IFC’s sixth investments in MCS. Previous investments are available at: https://disclosures.ifc.org/project-detail/ESRS/44118/mcs-covid; https://disclosures.ifc.org/project-detail/ESRS/33808/intermed; https://disclosures.ifc.org/project-detail/ESRS/31669/mcs-property; https://disclosures.ifc.org/project-detail/ESRS/28546/shangri-la-ulaanbaatar-hotel-llc; https://disclosures.ifc.org/project-detail/ESRS/25170/mcs-group). The E&S performance of MCS’s past projects and those still in IFC’s portfolio has been satisfactory.