RLF loan to Ukraine's JSC Farmak



Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

22 Apr 2022



PSD disclosed:

29 Apr 2022

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

EUR 20 million senior term loan to JSC Farmak. 

Project Objectives

Financing of working capital needs of pharmaceutical production operations: purchase of raw materials, payment of salaries, storage and transportation of finished goods and their subsequent sale in Ukraine and for export.

Transition Impact

ETI score: 70

- Resilient: project supports a business directly affected by the conflict and would enable the client to continue operations.

- Inclusive: project would help to alleviate current shortages of medicine and counteract upward pressure on prices, benefiting the local population as well as internally displaced persons across the country.

Client Information


PJSC Farmak is a leading manufacturer of pharmaceuticals in Ukraine with pre-war 5.7% market share by value in a highly fragmented market. 

EBRD Finance Summary

EUR 20,000,000.00

Total Project Cost

EUR 20,000,000.00


The EBRD financing is provided under extraordinary circumstances stemming from the war on Ukraine, offering a unique set of terms, attributes and conditionalities. 

Environmental and Social Summary

Categorised B (ESP 2019). Provision of working capital to the existing Client producing APIs and pharmaceutical formulations is associated with standard for the industry E&S impacts linked to GMP compliance, solid waste and wastewater management, OHS practices and product safety, as well as new risks related to employees safety working in the war conditions. The Company provided timely ESAP updates as part of annual monitoring in the past and is on track with the existing loan ESAP implementation. The AESR for 2021 is still outstanding and will be deferred in submission due to the critical situation in the country and the priority given to restoring API and other raw materials supply following warehouse fire. The AESR review will be carried out in 1H2022 post-disbursement. Overall, the Client's EHS management systems and internal resources demonstrated capacity to implement best practices and address identified issues on the past projects, e.g. soil contamination, waste water treatment, and pharmacovigilance among others. 

Technical Cooperation and Grant Financing

TC: The preparation of the transaction was supported by the Shareholder Special Fund TC funds of EUR 50,000, which covered associated legal due diligence costs.

Non-TC: The project is approved on the basis of minimum 50% of donor funding coverage.

A first loss guarantee of 44.5% is expected to be provided through the EU-EBRD Municipal, Infrastructure and Industrial Resilience Guarantee Programme. The Guarantee Programme is funded by the European Union under its European Fund for Sustainable Development (EFSD). Through this programme, the European Commission primarily engages in the energy transition of countries in the European Neighbourhood South and European Neighbourhood East by supporting energy efficiency and green technologies investments to support decarbonisation paths and the accomplishment of sustainable development goals. Additionally, it also supports borrowers which have been negatively impacted by either the COVID-19 pandemic or, more recently, the military conflict in Ukraine.

In addition, a first loss risk guarantee of 5.5% under the Shareholder Special Fund Risk Sharing Programme will be provided for this loan [subject to Board approval]. On the basis of both guarantees, total donor guarantee will cover 50% of the loan amount.

Company Contact Information

Iryna Kravchenko
+38 (050) 411-43-67
63 Kyrylivska Street, Kyiv, 04080, Ukraine

PSD last updated

10 May 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

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More information on the EBRD’s practices in this regard is set out in the ESP.

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The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

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Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.


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