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EBRD to provide Farmak with EUR 20 mln loan
KYIV. May 2 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) will provide its longtime client, JSC Farmak (Kyiv), the largest Ukrainian pharmaceutical manufacturer, with a EUR 20 million senior term loan, which will focus on working capital needs.
"Financing of working capital needs will support the pharmaceutical production of Farmak which is of critical importance during the current state of war. The bank’s financing will therefore improve the access to essential medicines for the population in Ukraine by supporting the client’s operations," the bank said on its website.
According to report, the board of directors of the bank approved the decision on April 22.
The documents also indicate that the Guarantee Programme is funded by the European Union under its European Fund for Sustainable Development (EFSD). Total donor guarantee will cover 50% of the loan amount.
The EBRD said that Farmak’s pre-war share by value in a highly fragmented market was 5.7%.
During the war started by Russia against Ukraine, Farmak lost about UAH 1.5 billion due to a fire in a warehouse in Kyiv region. There were ready-made drugs, raw materials for drugs, primary packaging in the warehouse.
In 2021, the company said that over the 15 years of cooperation with the EBRD, it has concluded four loan agreements with it for a total of EUR 67 million.
The EBRD earlier A Framework of up to EUR 2 billion under the EBRD Resilience Package, a broad strategic approach of the Bank as a response to the war on Ukraine.
"The Framework will be utilised for various types of financing instruments to private clients, sovereigns, municipalities, municipal owned companies and other state-owned enterprises and financial intermediaries (including state-owned banks) in Ukraine and nearby countries most affected by the inflow of Ukrainian refugees," the bank said.
The sub-projects will be provided out of the bank’s ordinary resources, including the bank’s financing benefitting from donor guarantees.
The overall objective of the Framework is to help sustain the provision of services and safeguard business activities in Ukraine and the Affected Countries, with the ultimate goal of preserving livelihoods, the EBRD said.
"For Ukraine, the Framework covers all sectors, with particular focus on energy security, vital infrastructure, food security and support to pharmaceutical supply chain," the bank said.
