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- Loan to Ibnsina Pharma will finance green capex
- Investment will support new warehouse and boost competitiveness
- Project will cut annual CO2 emissions by 207 tonnes
The European Bank for Reconstruction and Development (EBRD) is providing a EGP 1.3 billion (€23.1 million) loan to Ibnsina Pharma, the largest pharmaceutical distribution company in Egypt, to finance green capex for a new warehouse and related long-term working capital.
The EBRD’s investment will finance the new warehouse development, which is aiming to achieve EDGE’s “Standard” rating as a minimum. The EBRD will also provide extensive technical advisory support, performing an energy audit of the building, identifying gaps in the design and recommending measures to improve the resource efficiency of the building.
Once completed, the project will reduce annual CO2 emissions by 207 tonnes, as well as saving 16,905 m3 of water per year.
Egypt remains the second largest pharmaceutical market in the Middle East and North Africa, characterised by strong domestic manufacturing. One of the key drivers of Egypt’s pharmaceutical industry is its large population, which is expected to reach 120 million by 2030.
In addition to its green credentials, the EBRD’s investment will also strongly enhance Ibnsina Pharma’s competitiveness, as the new warehouse forms part of a broader network optimisation and expansion plan, which includes up to 12 new warehouses. This expansion aims to enhance operational capacity in response to rapid growth in sales volumes and the diversification of revenue streams.
Greg Guyett, the EBRD’s First Vice President, welcomed the project, saying: “We are delighted to support a vital sector that offers substantial potential for sustainable long-term growth. This financing will contribute to the country’s green transition and bolster the company’s competitiveness, establishing it as a robust actor in a strategic industry.”
Mohsen Mahgoub, the Managing Director and Vice Chairman of Ibnsina Pharma, said: “This agreement is a pivotal moment for Ibnsina Pharma. We were not simply looking for a lender; we were looking for a strategic partner that would force us to ‘level up’ our operations to meet global benchmarks. We view this facility as an international seal of approval. Passing the EBRD’s rigorous due diligence validates our governance, transparency and operational standards in the eyes of our stakeholders. It signals to investors and partners that we are an institutionalised, safe counterparty, fully equipped to execute our green infrastructure goals and drive sustainable value.”
Ibnsina Pharma is a longstanding partner of the EBRD. The Bank first became an equity investor in 2015, acquiring a 20 per cent stake through a combination of primary and secondary transactions to support the expansion of Ibnsina Pharma’s warehouses, distribution centres and overall supply chain. Over the last decade, Ibnsina Pharma has become Egypt’s leading publicly listed pharmaceutical distributor, delivering strong growth and diversifying into non pharma operations. Earlier this year, the EBRD fully exited its investment, marking the conclusion of a successful chapter in our partnership.
Egypt is a founding member of the EBRD. Since the start of the Bank's operations in the country in 2012, the EBRD has invested over €14.2 billion in 219 projects across the economy.