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Farmak receives a €32 million loan
EBRD’s first financing for pharmaceutical sector in Ukraine
The European Bank for Reconstruction and Development is providing a €32
million loan to JSC Farmak, one of the largest pharmaceutical companies in
Ukraine. The loan proceeds will be used to modernise the company’s existing
operations and to build new manufacturing facilities. The loan will enable
Farmak to launch production of new pharmaceutical products, including vaccines
and cardio-generics, that conform with the European Union’s Good Manufacturing
Practice (GMP) industry standards. A portion of the loan is being syndicated
to two commercial banks: ING Bank N.V. Dublin Branch and Raiffeisen
Zentralbank Österreich AG, which are providing € 10 million under the EBRD’s
A/B loan structure.
The project will facilitate further growth and expansion of Farmak. It will
help increase competition in the Ukrainian pharmaceutical sector by
strengthening the role of a local, low cost manufacturer in the production of
new higher quality products, many of which are currently imported. This is
especially important given that less than a third of about 500 pharmaceutical
producers operating in the Ukrainian market are domestic manufacturers with a
market share of less than 30 per cent.
Olivier Descamps, Business Group Director for southern and eastern Europe,
said the transaction with Farmak is the first deal in Ukraine’s pharmaceutical
sector for the Bank. The EBRD has significant sector experience in other
countries, which it would like to utilise in Ukraine through other projects,
he stressed.
Filya Zhebrovska, Chairman of the Board and General Director of Farmak, said
the EBRD’s financing will support the company’s strategy aimed at maintaining
its strong domestic position. The financing will also enable Farmak to
introduce GMP standards, innovative technologies and carry portfolio upgrades
essential for exports to European markets, she added.
The EBRD is the single largest financial investor in Ukraine, having committed
to date over EUR 2.5 billion across all sectors in the country.
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