The European Bank for Reconstruction and Development
(EBRD) is considering providing an equity investment of up to USD10 million,
but not exceeding 20 per cent of total aggregate capital commitments, to the
Mongolia Opportunities Fund. The Fund will be the first private equity fund in
Mongolia to focus on equity and quasi-equity investments in fast growing small
and medium-sized enterprises.

The Fund will provide growth capital to companies that
exhibit established profitable business models, have strong management teams
and demonstrate potential to become market leaders. The Fund will invest in
companies primarily operating in sectors covering agribusiness, infrastructure
and mining services and supplies chain, with the objective of achieving long
term capital growth in Mongolia. The Fund will consider investments in the
range of USD2.5 to USD7.5 million per company.

The Fund will support the development of private
companies in Mongolia by adopting a hands-on approach and transferring
operational and strategic expertise and know-how.