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funding gap emerging markets
Mongolia

Ulemj Organic LLC 1

  • Golomt Bank
  • Invest in a Financial Institution
  • + 280 other investors
  • With EUR 105,900 Tsogtbuyan will be able to increase the production capacity of his dairy factory. Issuer is the Golomt Bank.

    €105,900
    Amount
    2.50%
    Interest
    18 months
    Maturity
    6 months
    Repayments
    EUR
    Currency
    Amount€105,900
    Interest2.50%
    Maturity18 months
    Repayments6 months
    CurrencyEUR
      100%
      Fully funded in 35 days on 27 December 2017.

      Summary

      Read the information document of the issuer here

      Part I of II

      The owner of the company, Mr. Tsogtbuyan is one of the first professional breeders in the country trained back in 1980’s by the western experts. After socialist system collapsed in 1990, Mongolian state owned factories and farms were all privatized and most of them closed the door, due to poor management. However, Mr. Tsogtbuyan persisted his dream to provide healthy dairies to the consumers and took risk to establish his own farming business in 1992, during the most vulnerable economic period of the country.

      What started as a small diary business with only 11 cows now reached to 150 milk cows and increasing demand from the market. The company’s ultimate goal is to fully replace imported dry milk with its own high quality, fresh, liquid milk, since 80% of the domestic dairy factories use imported dry milk for their production, while the country has over 4 million cattle.  

      In 2014, Mr. Tsogtbuyan started to produce its organic and tasty dairy products in local market and the products are unique because the company uses its own small farm using the traditional methodology. The livestock of the company’s farm is raised on Mongolian natural pasture and feed by nutrients which were planted organically without any pesticides and fertilizers. All of the products are rich in vitamins, minerals, nutritious and environmentally sustainable. The company believes it can affect consumers’ decision to choose environmentally friendly purchase by using reusable glass bottles for the products.

      In December 2016, the company successfully introduced 8 new products to the market and it immediately increased its sales income threefold. Now the company is producing 20 products in 8 categories with 14 full time staffs.

      There is a very high demand for their products, especially from mothers with babies and toddlers, elderlies who get essential nutritional needs through the dairy products, however the company is not able to meet this market demand with its current production capacity.

      In order to meet their market demand, the company is seeking loan 605 million MNT to buy new dairy equipment, 2 refrigerators and 2 more distribution trucks. It will increase job opportunity for 4 more full time staffs. By implementing the project, the company will be able to double the daily production capacity. 

      Company nameUlemj Organic LLC 1
      CEOTsogtbuyan Rentsen
      Founded1992-01-01
      LocationUlaanbaatar, Mongolia
      SectorAgriculture
      Turnover€315,972.22
      Employees14

      Impact

      Small and Medium Enterprises (SMEs) are important contributors to job creation and economic growth in emerging markets. However, access to financing is a key constraint to SME growth, as about half of them don't have access to formal credit. In Mongolia, Golomt Bank serves nearly 80% of the corporate market. They were the first commercial bank in the country to issue small business loans. Golomt Bank accelerated the development of mobile banking in Mongolia by introducing smart banking services in the local financial sector.

      Financial support enables Mongolian entrepreneurs to increase their professional activity, resulting in job creation and improved living conditions.

      Golomt Bank is a member of the United Nations Environmental Program Finance Initiative (UNEP FI). This partnership helps create a financial sector that serves people and the planet and mobilizes private sector finance for sustainable development. The bank has a "Sustainable Development Policy" in which they implement the SDGs in all its operations. For example, improving their waste management, increasing the number of roads for wheelchair users in their offices, and cooperating with environmentally friendly organizations.

       

      SDGs impacted

      With this project you are contributing to the following Sustainable Development Goals:

      SDG 1. No Poverty

      SDG 8. Decent work and economic growth

      Read more about the impact you can make through our platform and the SDGs on our impact page.

      • With this investment 4 jobs are created
      • With this investment 16 lives are improved

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      We have already contributed to Ulemj Organic LLC 1

      Jacques van den Bosch
      Trees van den Hoogen
      André Kloosterman
      Eric Gerritsen
      Jan Mostert
      + and another
      280
      investors