The European Bank for Reconstruction and Development (EBRD) may provide a financing package to Laona Group, a Ukrainian pharmaceutical wholesale and retail group, consisting of equity investment up to $8 million and a loan of $17 million.
The EBRD Board of Directors will consider the financing on November 23, 2010, the Bank said in a statement.
“The proposed project is designed to support Laona Group in financing additional stock of pharmaceutical products, improving operations, ensuring faster processing of payments, restructuring its balance sheet and improving its equity position,” reads the statement.
The total project cost is $35 million.
Laona Group is a Ukrainian pharmaceutical wholesale and retail group. Its key asset is Alba Ukraine, which is a wholesale pharmaceutical distribution company.
Alba Ukraine has been working on the Ukrainian market for more than 17 years.
The EBRD was among its stockholders earlier: in August 2002 it made equity investment in the company and the company’s management bought the stake back tentatively in 2006. Currently, Laona Investments Limited has a 100% stake in the company.
Alba Ukraine in 2009 boosted net revenues by 31.6%, to UAH 2.606 billion, its net profit was estimated at UAH 3.11 million against its net loss of UAH 258.8 million registered a year before.
