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„SEB Banka” Issues 14 Million Euro Loan for Development of „Olainfarm”

August 11, 2014

„SEB Banka” has issued a long term loan of 14 million euro to AS „Olainfarm” to finance its capital expenditures targeted at development of product portfolio, upgrading and expanding its production capacities, increasing its export potential and entering new export markets. A commercial pledge worth 21 million euro was provided in favour of AS „SEB Banka” to secure the loan. Olaine, August 11, 2014, 2014-08-11 13:49 CEST (GLOBE NEWSWIRE) -- It is planned that proceeds are used to finance the project on „ Introduction of new products and increasing of export potential of AS „Olainfarm””. Last year, to facilitate implementation of this project, the government of Latvia decided on tax rebate for AS „Olainfarm” worth 7 million euro. Upon completion of the project AS „Olainfarm” plans to introduce new products, and to significantly alter several production processes as well as to increase production efficiency. In total over the next few years AS „Olainfarm” plans to make CAPEX investments worth about 40 million euro. „Support by the government and our long term financial partnership with „SEB Banka” gives us a possibility to solve some of the issues important for our further development, including upgrading of production unit for nitrofuranes, new production unit for small batches, increased laboratory and research capacities. Once the project is implemented, we may create up to 80 new jobs,” says Valerijs Maligins, Chairman of the Board of AS „Olainfarm”. Ainars Ozols, President of „SEB Banka”: „We are grateful for an opportunity to be a financial partner of „Olainfarm”, one of leaders of Baltic pharmaceutical industry - „Olainfarm” and to help them meet their development ambitions. „SEB Banka” and „Olainfarm” have had several years of successful cooperation and we are certain that company’s development strategy is well developed and the company is capable of implementing large scale projects. These investments will create significant added value and will for a basis for further increase of „Olainfarm’s” competitiveness.” „Olainfarm” and „SEB Banka” have implemented several sizeable cooperation projects in the past, including acquisition of chain of pharmacies in 2012, when the loan of 6 million euros was used, investments in „Olainfarm energija” in 2011, where the loan of 3 million euros was used, as well as credit line and other financial services provided for the development of SIA „Silvanols”. JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 40 years of experience in production of medication and chemical and pharmaceutical products. A basic principle of company's operations is to produce reliable and effective top quality products for Latvia and the rest of the world. Products made by the Group are being exported to more than 35 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia. Information prepared by: Salvis Lapins JSC “Olainfarm” Member of the Management Board Rupnicu iela 5, Olaine, Latvia, LV 2114 Phone: +371 6 7013 717 Fax: +371 6 7013 777 E-mail: Copyright © 2014 OMX AB (publ).

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Source: OMX

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