The European Bank for Reconstruction and Development will grant a loan of up to EUR 5 million to LLC Apteka Group Holding for five years, which is the first mezzanine loan organized by EBRD in Belarus. "Mezzanine lending, in which equity instruments are built up and which, as a rule, is an intermediate option between debt and equity financing, is spread in international markets, but in Belarus it is being introduced only now, " as it was explained in the Bank.
It is assumed that Belarusian consumers will have access to a wider range of high-quality medicines as a result of the opening of new pharmacies throughout Belarus. The EBRD-backed expansion of the country's largest pharmaceutical holding - Apteka Group - involves opening up to 160 new pharmacies before the end of 2021.
As Head of the EBRD office in Belarus Alexander Pivovarsky explained, this deal is important for a number of reasons. "Firstly, it is supporting the expansion of a well-established player in the market that cares about the well-being of people in Belarus." Secondly, we are introducing new financial products in the country, which will give more flexibility to our clients, "he stressed.
According to Leonid Tomchin, Сhairman of the Board of Directors of the holding Apteka Group, this is the first draft of mezzanine foreign exchange financing, implemented directly by EBRD in a pharmaceutical holding company with Belarusian residency.
"The implementation of this agreement was preceded by lengthy negotiations and serious work of analysts, lawyers, consultants." The agreement we have signed with the EBRD testifies to the growing interest and confidence of international financial organizations in the economic development of our country's enterprises and gives an additional inflow of foreign currency to the Belarusian economy. The example will open a window of new financial opportunities for Belarusian companies, "he said.
Leonid Tomchin said that Pharmacy Group includes 201 pharmacies, 46 pharmacies were opened in 2017. "This transaction will allow us to double the number of drugstores under Adel and Dobryaya Leki brands within five years, as well as increase the competence of our activities, drawing on the experience of European experts," he said.
Source: BelTA