HERA EQUIPMENT LLC
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
Hera Equipment LLC is a supplier of heavy equipment and machinery for mining and infrastructure projects in Mongolia by sales, financial leasing and rental. Hera plans to further expand into after-sales service and spare parts supply.
What is our funding objective?
FMO will invest US$3 mln in convertible preference shares, through the SPV Mongolia Mining Services (MMS), representing a 7.77% stake in Hera (after the ratchet adjustment). FMO will co-invest alongside the Mongolia Opportunities Fund I. An additional US$10 mln loan will be provided for working capital, warehouses/servicing facilities and engine rebuild facility. The loan will have a tenor of 5 years, with a 2 year grace period.
Why do we fund this investment?
Through this financing FMO is supporting an SME in a growth sector by providing scarce long-term capital. FMO also plays a catalytic role, as the equity investment enables Hera to attract senior debt, also by restructuring existing bank loan to longer term. FMO's non-financial contributions will be in improving governance in order to enable Hera to attract additional external financing and to get the company ready for an IPO in a few years.
- Website customer/investment
- http://www.hera.mn
- Region
- Asia
- Country
- Mongolia
- Sector
- Infrastructure, Manufacturing and Services
- Effective date
- 8/8/2013
- End date
- 6/28/2018
- Total FMO financing
- USD 10.00 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