ADB Backs Mongolia Retail Expansion with $10 Million Social Loan

ADB Country Operations Head for Mongolia Chandra Mohan Arora said the initiative will improve the reliability of food distribution while reducing supply bottlenecks and making safe, affordable products more accessible nationwide.

The Asian Development Bank (ADB) has approved a $10 million social loan for Mongolia's Premium Nexus JSC to strengthen food distribution, expand modern retail services and improve access to safe, affordable food across the country. The investment is expected to create hundreds of jobs while supporting women entrepreneurs and strengthening supply chains in both urban and rural communities.

Investment to strengthen food supply and retail network

ADB said the financing will help Premium Nexus expand its retail and logistics operations by building a modern cold chain distribution centre and opening 240 new CU convenience stores across Ulaanbaatar and rural Mongolia. The project is designed to address long-standing challenges in Mongolia's food distribution system, where fragmented supply networks, limited logistics infrastructure and inconsistent access to essential goods continue to affect many communities outside the capital.

ADB Country Operations Head for Mongolia Chandra Mohan Arora said the initiative will improve the reliability of food distribution while reducing supply bottlenecks and making safe, affordable products more accessible nationwide.

New jobs and greater opportunities for women

The expansion is expected to generate around 900 new jobs, with employment opportunities for women and workers in rural areas. The project will also increase the number of local suppliers working with Premium Nexus from 420 to 453, creating additional business opportunities for domestic producers. A major focus of the investment is improving women's participation in the economy. The programme will support women through expanded franchise opportunities, better access to finance and increased promotion of products made by women in Premium Nexus stores.

Premium Nexus Chief Executive Officer Chinzorig Ganbold said the partnership goes beyond financing, describing it as an investment in Mongolia's food security, stronger supply chains and inclusive economic growth.

Social loan supports long-term economic development

The financing has been recognised as a social loan by global environmental, social and governance assurance firm Det Norske Veritas (DNV). The classification reflects that the full proceeds will be used for projects supporting employment, improved access to essential services and broader socioeconomic development under internationally recognised Social Loan Principles.

ADB believes the transaction could encourage similar forms of social impact financing in Mongolia by demonstrating how private sector investment can contribute to national development goals. Founded in 2017, Premium Nexus operates Mongolia's CU convenience store network under an exclusive franchise agreement with South Korea's BGF Retail Company Limited. As of March 2026, the company managed 557 stores across the country and employed more than 5,200 people, making it Mongolia's second-largest private sector employer.