MONGOLIA MINING SERVICES PTE LTD
Status: Completed investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Mongolia Mining Services PTE Ltd. is the Special Purpose Vehicle through which FMO and the Mongolia Opportunities Fund (MOF) are invested in Hera Equipment LLC. The Company is a leading mining equipment and heavy machinery supplier and an official distributor of Hyundai Heavy Industries from Korea, Daewoo, Hanjin D&B, Junjin CSM, Rubble Master from Austria, Cummins, Colorado TR and ITR from Italy. Hera's particular focus area is in excavators, in which it leads the market, and smaller machinery produced by Hyundai.
What is our funding objective?
The full amount of USD 13 million (USD 3 million equity and USD 10 million Mezzanine loan) will be used for a combination of working capital financing, warehouses/servicing facilities and for the engine rebuild faciliity. 50% of the mezzanine loan will be used to purchase equipment for rental and leasing purposes. This transaction is a co-investment with The Mongolia Opportunities Fund (MOF), which is being managed by Mongolia Opportunities Partners.
Why do we fund this investment?
This co-investment provides an opportunity for FMO to participate in an attractive company with significant growth potential. Mining development has boosted the demand for heavy machinery and mining equipment. The development impact is excellent, given the provision of long-term risk-bearing capital by DFIs in challenging times and circumstances. The transaction is the first co-investment opportunity with MOF which has a perfect fit with FMO's strategy to provide direct investments alongside the PE Funds we have already invested in.
- Region
- Asia
- Country
- Mongolia
- Sector
- Infrastructure, Manufacturing and Services
- Effective date
- 9/20/2013
- End date
- 7/19/2022
- Total FMO financing
- USD 3.12 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B