Mongolian rental company Mongolia Holdings, which operates the Hertz Equipment Rental (HERC) franchise in the country, has announced US$40 million (€35 million) fleet investment plans.
The company, through its Mongolian subsidiaries HERC and Equipment Rental, said it had entered into a loan agreement with XacBank for a US$10 million (€8.8 million) equipment financing transaction – the first tranche of a proposed US$40 million (€35 million) line-of-credit arranged by the bank.
Mongolia Holdings CEO Gary Kucher said the deal had come after over three years of planning, due diligence, hard work and execution.
“I want to personally thank all of the representatives of XacBank and Hertz, together with our management team, employees and stakeholders, as this completes a truly historic milestone for the company and a significant corporate financing within Mongolia," he said.
“This credit facility allows the company to further execute its business plan, and we anticipate announcing additional progress in the near-term. We look forward to working together and forging a longstanding, mutually successful relationship with both Hertz and XacBank that will continue to build value for our stakeholders.”
Mr Kucher will be presenting at the International Rental Conference (IRC) in Beijing, China, on 21 September.
Via the capital markets, Mongolia Holdings said it planned to explore sourcing additional funding to be used for the setup of its equipment maintenance facilities, build-out of its mobile services vehicles, new employee training and to fund on-going operations.
Mongolia Holdings is the exclusive HERC Franchisee in the country, renting, selling, and maintaining equipment for use in construction, mining, materials-handling, commercial, and industrial activities in Mongolia.
The company said it eventually planned to apply for a listing on a US stock exchange.