Source: JustAgro               Date: August 17, 2011

The multi-faceted foreign corporation JustAgro LLC will issue MNT 330 billion of secured corporate bonds, the first listed under the Mongolian Stock Exchange (MSE) since 2008. The Financial Regulatory Commission of Mongolia (FRC) approved its petition to for the bonds. It will use the funds to finance the purchase of raw material and expand its business,

The company plans to divide the total amount between 3 branches, depending on the timing of issuance with the first tranche or MNT 10 billion of bonds expected to be issued by the end of August, said a company representative. Real estate will secure the bonds, put as collateral in the event of bond default. The company will pay a 16.2 percent interest rate annually. A coupon payment will occur every quarter.

JustAgro LLC first started operating solely in the oil product import and distribution industry. In 2000 it entered into the agriculture industry, and then from 2006 it has expanded its activities to construction and international trading. Just Agro LLC currently controls 30% of the domestic meat processing market and supplies 20% of the meat export, is planning to increase its use of capacity from 30% to 80% by purchasing more raw material or livestock using the bond proceeds The company has 11 slaughtering and meat processing factories throughout Mongolia.