News Column

Jubilant Pharma project

June 7, 2014

Project number : 35027 Region : South Asia Country : India Company name : Jubilant Pharma Ltd Sector: G-FA - Pharmaceuticals and Medicine Date SPI disclosed: May 29, 2014 Project Description: The proposed project (the Project) involves an IFC-led financing package that will help provide a counter cyclical and long-term financial support to Jubilant Pharma Limited, Singapore (JPL or the Company) and through JPL, to its parent company, Jubilant Life Sciences Limited, India (JLS or the Parent). JPL is a wholly owned subsidiary of JLS and with this financing, JLS plans to consolidate its pharmaceutical business under JPL. This financing package will help JLS to de-couple its pharmaceutical business from its life science ingredients (LSI) business and enhance shareholder value. Project Sponsor and Major Shareholders of Project Company : JLS is a part of the Jubilant Bhartia Group, which is a well known Indian conglomerate with diversified business interests in pharmacetuticals, life science ingredients, food, retail, oil and gas and trading activity. The group, promoted by Mr. Shyam Bhartia and Mr. Hari Bhartia (the Sponsors), operates in multiple locations globally and has over 30,000 employees. JLS is the Group s vehicle for the life science ingredients and pharmaceutical businesses and holds 100% of the share capital of JPL. JLS s operations are geographically diversified and its operating assets in India, United States of America and Canada. JLS, is listed in the Bombay and National Stock Exchanges in India and the Sponsors own approximately 54% of JLS s shares. Total Project Cost and Amount and Nature of IFC%s Investment : Of the total outlay required for the Project and other growth initiatives over the next two to three years, IFC has been requested to provide part of the outlay and arrange a financing package of upto US$200 million, including for IFC s own account (a) A loan of US$50 million and (b) a quasi-equity investment of US$60 million. Expected Development Impact 1) Creation of better quality jobs: JLS employs 6,277 people globally, including 1,018 dedicated to R&D and in its pharmaceutical business; JPL employs more than 3,000 people, of which 50 percent are in India. The proposed investment will help maintain these jobs and create new ones, as JPL is able to launch new products, thanks to a stronger balance sheet. 2) Increased access to affordable quality healthcare: The Company%s strong product pipeline and R&D capability will enable better access to quality and affordable healthcare in the underserved markets, including India. 3) Demonstration effect: Through its financing, IFC will help a mid-sized company that has a solid business profile to strengthen its financial structure by lengthening the average maturity of its debt and minimizing its exposure to foreign exchange fluctuations. The proposed IFC financing will facilitate the corporate reorganization thereby enabling JPL to achieve sustainable growth.

Project completion date : 2015-05-29 12:00:00

Major organization : JUBILANT PHARMA LTD

Address : Plot 1A, Sector 16 A Noida 201301 Uttar Pradesh

Country :India

Email :

Financier : International Finance Corporation (IFC),

Financier address : International Finance Corporation (IFC) 2121 Pennsylvania Avenue, NW Washington, DC 20433 USA Tel: (202) 473-3800 Fax: (202) 974-4384

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Source: TendersInfo (India)

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