Kyiv, Ukraine, May 15, 2006
—The International Finance Corporation, the private sector financing arm of the World Bank Group, is providing a $3.5 million loan to Biocon, a leading pharmaceutical warehousing company in Ukraine.
Established in 1994, Biocon has grown into a premier provider of services relating to customs clearance, transportation, relabeling, and repackaging of imported drugs. Biocon will use IFC’s financing to refurbish two recently acquired warehouses, build a new storage facility, and upgrade its IT systems.
Guy Ellena
, IFC’s Director for Health and Education, said, “As a market leader, Biocon sets the standards for the rest of the industry. By supporting the company’s expansion, IFC expects to promote a greater role for the private sector in providing high-quality health care products.”
“This is IFC’s first investment in a third-party logistics service company in Ukraine,” noted
Elena Voloshina
, head of IFC’s operations in Ukraine. “IFC's participation will help this locally owned and managed pharmaceutical distributor expand and improve the efficiency of its operations,” she added.
“IFC's investment offers us access to long-term financing that is otherwise unavailable in Ukraine. Success of the project will demonstrate to other potential investors in Ukraine that pharmaceutical distribution projects can be economically viable and have developmental value,” commented
Alexander Yavorsky
, President of Biocon. “IFC’s loan will help us improve the efficiency of the pharmaceutical distribution network and enhance the quality of services and care provided to patients,” he added.
Additional Information
Founded in 1994 in Kyiv,
Biocon
is the market leader in the pharmaceutical customs bonded warehouse business in Ukraine, providing services in customs clearance, transportation, and storage of pharmaceutical products. Among Biocon’s key and long-term clients are many of the large multinational pharmaceutical manufacturers.
The International Finance Corporation (IFC)
, the private sector arm of the World Bank Group, promotes sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. Its 178 member countries provide its share capital and collectively determine its policies.
From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications. For more information, please visit
www.ifc.org
.
Ukraine became a shareholder and a member of IFC in 1993. As of May 1, 2006, IFC has invested around $480 million in 23 projects. IFC expanded its investment program in Ukraine significantly in 2004-2005, committing $255 million in the agribusiness, financial, and general manufacturing sectors. IFC has also been conducting an extensive advisory program since 1992, which initially focused on the privatization of small businesses, land, and idle construction sites. Current donor-funded programs offer advice on corporate governance, leasing, and agribusiness. Programs also seek to improve the business environment and promote the growth of small and medium enterprises.
