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
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 www.ifc.org
To learn more visit www.farmakom.rs