The European Bank for Reconstruction and Development (EBRD) will invest up to €5 million in the Belarusian pharmaceutical industry, Head of the EBRD Office in Belarus Alexander Pivovarsky told the media on 25 January.
The EBRD will lend up to €5 million to the managing company of Apteka Group Holding Company for five years. This is the first mezzanine loan to be provided by the EBRD in Belarus. “Mezzanine financing includes equity instruments. As a rule, it is an intermediate option between debt and equity financing. Although it is widespread on the international markets, it is a new thing for Belarus,” the bank noted.
Belarusian consumers are expected to get access to a wider range of high-quality medicines after some new pharmacies open across the country. The EBRD-backed expansion of Belarus’ largest pharmaceutical holding company, Apteka Group, will see up to 160 new pharmacies open in Belarus by the 2021 year-end.
This deal is important for several reasons, Alexander Pivovarsky clarified. “First of all, this is about providing support to the market player with a good track record, who cares about the well-being of Belarusians. Secondly, we will introduce new financial products in the country, which will add flexibility to our customers,” he underlined. According to Leonid Tomchin, Chairman of the Board of Apteka Group, this is the first mezzanine financing project to be implemented by the EBRD directly with a Belarusian-based pharmaceutical holding company. “It was preceded by long negotiations and some serious work of analysts, lawyers, and consultants. The agreement we signed with the EBRD today shows the growing trust and interest of international financial organizations in the economic development of Belarusian companies. It will also attract additional foreign currency to Belarus’ economy. We hope that our example will open up new financial opportunities for Belarusian companies,” Leonid Tomchin added.
In his words, Apteka Group Holding Company comprises 201 pharmacies, 41 out of which were opened in 2017. “This deal will help us double the number of pharmacies under the trademarks Adel and Dobryya Leki within five years. We will also increase our expertise by means of studying the experience of European experts,” he said.
Since the start of its operations in Belarus in 1992, the EBRD has invested almost €2 billion in 95 projects in various sectors of Belarus’ economy.
