Belgrade, Serbia, October 14, 2011—
IFC, a member of the World Bank Group, is providing a €40 million loan and mobilizing funding of €80 million to help Farmakom Group, one of Serbia’s leading private sector employers, expand its operations, create jobs and support the country’s economic recovery.
The transaction is one of the biggest this year in Southeast Europe and will help Farmakom, a leading player in the agribusiness, manufacturing, and mining sectors, restructure its balance sheet and grow its businesses. In addition to the financing, IFC will help Farmakom implement improvements to its corporate governance structure.
“The fact that we became a client of IFC is a great tribute to our company,” said Miroslav Bogicevic, owner and director of Farmakom Group. “It’s a confirmation that we have a solid structure and that we are well positioned.”
The global financial crisis had a profound negative effect on Serbia and much of Southeast Europe. IFC has been focused on aiding the region’s economic recovery, with an eye towards greater integration, through a combination of investments and advisory work.
“IFC is supporting leading private sector companies in Southeast Europe, such as Farmakom, to improve their operations in preparation for integration into the European Union market,” said Guy Ellena, IFC Director for Manufacturing, Agribusiness, and Services for Europe, Middle East and North Africa.
In addition to the €40 million loan, IFC helped Farmakom secure financing from other lenders. Erste Bank Austria committed €30 million under IFC’s syndication program, while the remaining part of mobilization was committed by Komercijalna Banka (€35 million), Banca Intesa (€10 million), and Cacanska Banka (€5 million) in parallel loans.
Serbia became a member of IFC in 2000. As of August, IFC's investment portfolio in the country stood at $384 million. IFC’s Advisory Services arm has also been active in improving the local investment climate, increasing access to finance, and attracting private sector participation in infrastructure projects.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit