EBRD Project name: Farmak
September 12, 2006
Project name: Farmak
Business sector: General manufacturing
Environmental category: B
Board date: 17 October 2006
Status: Passed final review, Pending board approval
Date PSD updated: 11 September 2006
and objectives: The proposed project will facilitate further growth and expansion of one of the leading manufacturers of pharmaceutical products in Ukraine, Farmak. It envisages upgrades of the existing and creation of new manufacturing facilities in conformity with GMP standards.
Transition impact: The participation of the Bank in this Project is consistent with the increased financial support of dynamic local companies, improving standards of financial management and corporate governance.
This is the first Bank’s project in the Ukraine’s pharmaceutical industry. It will promote introduction of new efficient technologies including an innovative bio-technology as well as GMP standards, staff training and export in the industry.
The proposed transaction may lead to greater competition in the pharmaceutical sector by strengthening the role of a local, low cost manufacturer in the production of new higher quality products, some of which are currently imported.
The client: Open JSC Farmak is one of the leading manufacturers of pharmaceutical products in Ukraine.
EBRD finance: A corporate loan of EUR 32 million, part of which will be syndicated to commercial banks.
Total project cost: EUR 86 million
Company — FARMAK