The EBRD has provided financing of $25 million to wholesale pharmaceutical distributor Alba Ukraine, in an investment that will help the company improve its stock management and logistics and which also introduces a more robust and stable financing structure to use as a platform for future growth.
The financing package, including a senior loan of up to $13 million and an equity investment of up to $12 million, will also support the expansion of Alba’s wholesale operations, taking it towards its target of holding a market share of twenty per cent by 2016.
The company is also going to introduce a customer loyalty programme – a new approach for the Ukrainian pharmaceutical wholesale market. The concept will also generate greater brand awareness for Alba.
André Küüsvek, EBRD Director for Ukraine said: “This is the second equity investment in the pharmaceutical sector for the Bank in Ukraine. This sector, which is expected to annually grow by twelve percent for the next few years, is one the most dynamic sectors of the Ukrainian economy. We feel it is very important to support strong domestic players like Alba Ukraine”.
The project is part of the EBRD strategy in Ukraine to promote higher efficiency, competitiveness and corporate governance standards among local private companies.
The European Bank for Reconstruction and Development is the largest financial investor in Ukraine. As of 31 December 2010, the Bank had committed over €6 billion ($8.3 billion) through 264 projects.