Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

06 Apr 2004



PSD disclosed:

11 Feb 2004

Project Description

The proposed project envisages providing a € 22 million syndicated senior loan to Hemofarm Koncern a.d. (Hemofarm) to finance the construction of a new solid forms packaging and production facility in Obninsk, Russian Federation. The facility will comply with the EU Good Manufacturing Practices (GMP) standards. By establishing local production in Russia, Hemofarm aims to increase sales and improve its competitive position.

Transition Impact

The project's transition impact will be visible through the support of a local company to expand regionally while at the same time supporting FDI in the underdeveloped Russian pharmaceutical market. The new facility will be among the few to comply with GMP, and the Bank's investment will set a strong visible benchmark for other Russian producers. In addition to new employment, the project will promote skills and knowledge transfer and will support the implementation of the best industry practices for production, marketing and sales. Successful syndication of the loan will assist Hemofarm to develop a long-term relationship with commercial bank(s), and future access to commercial financing.

The Client

Hemofarm Koncern is a privately-owned pharmaceutical producer incorporated in Serbia and Montenegro. With estimated sales of over € 170 million in 2003 , Hemofarm is a leading local pharmaceutical company with a market share of around 45%.

EBRD Finance

The Bank will provide a € 22 million senior long-term loan to the client. EBRD intends to syndicate up to 50% of the loan amount with commercial bank(s).
This will be the second loan to Hemofarm to be approved from the EBRD. The first loan for capacity expansion and upgrades of € 18 million was approved in April 2002.

Project Cost

€ 24.9 million.

Environmental Impact

The project was screened B/0, requiring an Environmental Analysis. In addition, an Environmental Impact Assessment (EIA) of the Hemofarm facility is currently being prepared by independent consultants, in accordance with Russian legal requirements, and will be completed by February 2004. The Bank's environmental investigations confirmed the facility will be constructed and operated in accordance with best international practice; environmental impacts are minimal and mitigation measures will be in accordance with national and EU standards. The Obninsk facility has been designed and will operate according to the GMP which Hemofarm has implemented successfully in its other facilities in Serbia and Montenegro together with pollution prevention, energy efficiency and waste/wastewater recycling. The Company is also planning to implement the international management standard ISO 14000 in its facilities. Hazardous waste arising (mostly waste solvents) will be managed by the local certified company. Air emission management will be carried out applying state-of -the art air pollution control equipment.

Technical Cooperation


Company Contact

Attn: Mr Bora Krstic
Hemofarm Group
Beogradski put bb, 26300 Vrsac, 
Serbia and Montenegro
Phone: +381 13 821 345
Fax: +381 13 821 034
Email: bkrstic@hemofarm.co.yu

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

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