The European Bank for Reconstruction and Development (EBRD) is providing a local currency loan of up to MNT 143 billion (€34.9 million equivalent) to Tavanbogd Construction Machinery (TCM), the official dealer of Hitachi heavy machinery in Mongolia, according to a press release issued on 13 July 2026. The financing will enable the company to build a new energy and resource-efficient industrial facility. The project will be supported by the EBRD’s FINTECC programme.
TCM is a subsidiary of Tavanbogd Group and has been a Bank client since 2009. The company serves as the official dealer of Hitachi heavy machinery in Mongolia. The loan is denominated in local currency, an approach that reduces exposure to foreign exchange risk for the borrower. The equivalent value stands at €34.9 million. The transaction reflects the EBRD’s continued engagement with private-sector clients in the country.
The funding will help finance the construction of a modern maintenance workshop, a warehouse and office space. It will also support TCM’s working capital needs. The new industrial facility will incorporate a range of energy-efficient components. These include high-performance insulation, LED lighting, natural ventilation systems and heat pumps. Together, these features are designed to improve the facility’s energy and resource efficiency.
To further advance the project’s climate-related components, an incentive grant will be provided through the EBRD’s Finance and Technology Transfer Centre for Climate Change (FINTECC) programme. FINTECC support is directed toward projects that integrate advanced climate technologies. The programme’s involvement complements the financing package extended to TCM. The design elements planned for the facility align with FINTECC’s objectives. This combination pairs commercial lending with targeted climate incentives.
The EBRD has invested more than US$ 3.2 billion (€2.8 billion) in Mongolia through 171 projects. Around 90 per cent of this funding has been used to support private-sector companies. The loan to TCM adds to that portfolio of engagements. It reinforces the Bank’s focus on private-sector development in Mongolia. The financing package brings together local currency lending and climate-focused support under a single project.
