Source: EBRD                       Date: 29 April, 2011

The European Bank for Reconstruction and Development (EBRD) is providing a credit of up to USD40 million to Magnai Trade to support the country’s petroleum sector with investments in energy-efficient technology and to fund the company’s expansion. The EBRD senior loan will finance the second phase of Magnai Trade’s development, as well as the construction of 18 new petrol filling stations across Mongolia. It will also help Magnai Trade expand its depot stores network and, thus improve the company’s distribution system. In addition, new petrol filling stations and depot stores will be fitted with equipment utilizing modern energy efficiency technology.

EBRD Managing Director for Energy and Natural Resources Riccardo Puliti said in Ulaanbaatar that the project was part of the EBRD’s strategy for the sustainable development of the entire petroleum distribution sector in Mongolia. “Our strategy is to pay particular attention to the promotion of the local private sector and the adoption of best environmental practices. This new project will ensure that Mongolian customers continue receiving high-standard services and better products, especially in the country’s remote areas and newly-developing regions,” Mr Puliti added. As part of the project, over half of the company’s staff and their franchisees will benefit from an advanced training course in environmental, health and safety management, conducted by international experts.

Magnai Trade is a leading independent private Mongolian importer and distributor of petroleum products and has developed a large fuel wholesale and retail network with a significant market share in the Mongolian market.