Source: Eurasia Capital                     Date: 03 June, 2011

Just Agro, a subsidiary of the Just Group, plans to raise MNT30 billion through sale of bonds soon, as revealed by its Director, Business Development, Mr. B. Enkhbat. The so-called "meat bond" will carry 16.2% interest and will be redeemed after a year. The company is valued at MNT45 billion and it is offering its sales agreements and meat stock of 16,000 tons as guarantee. The proceeds from the offering will be used for OPEX, procurement of livestock and increasing production capacity. The company plans to export 12,600 tons of beef and horse meat to Russia, and 4,500 tons of mutton to Arab countries, while selling 6,000 tons of meat in the domestic market. Just Agro’s market share is 32% in livestock procurement, 26% in slaughter capacity and 30% in meat and semi-finished meat storage.