ANNOUNCEMENT 04 Oct 2015
In October 2015, the Russian state development Bank Vneshekonombank (VEB) agreed on a loan to a local pharmaceutical company.
NUMBER OF INTERVENTIONS
VEB Annual Report 2016, p. 19, available at: https://veb.ru/en/investors/disclosure-of-information/annual-reports/
Vedomosti business daily, 4.10.2015 - https://www.vedomosti.ru/business/articles/2015/10/05/611411-veb-dast-kredit-r-farmu
On 2 October 2015, the Russian state development bank Vneshekonombank (VEB) and the local pharmaceuticals manufacturer R-Pharm have signed a loan agreement on 14.6 billion rubles (USD 221 million).
The loan will be spent on the construction of a factory for pharmaceutical substances in Rostov (Yaroslavl region) and the second production line at the existing factory for medicaments. Part of the funds will be directed at research and development expenses related to seven new medications development by R-Pharm.
Although the VEB did not disclose the details of the deal, it is clear that the loan has been provided at a below-market rate. This is so, because the VEB by its mandate, can only participate either in commercially unattractive but socially important projects, or in projects at the early stages of development when commercial lenders are unwilling to invest.