JSC Olainfarm and financial partner the bank BlueOrange have agreed to refinance existing liabilities on improved terms, provide additional financing for the company's development projects and planned investment in fixed assets. The deal is a statement of trust for the company's development and future perspective.
"We are proud of our accomplishments and positive impact on the company in the long run! We appreciate the involvement of BlueOrange, taking over the company's historical liabilities with ABLV Bank and contributing further to the company's development and modernization. The support will enable us to strengthen the money flow enhancing the trust of investors and business partners," notes Lauris Macijevskis, Chairman of the Management Board of JSC Olainfarm.
The total loan will amount to EUR 10.5 million over five years, of which nearly nine million will be redirected for historical liabilities and the remainder will be invested in the company's fixed assets as well as development through the upgrading of JSC Olainfarm cooling station and its engineering system to reduce greenhouse gas emissions. This project is implemented with co-funding from the European Union structural funds.
"We are pleased to be able to drive growth and provide support for one of the largest companies in Latvia. Lending to local entrepreneurs promotes business development, secures jobs, promotes the development of the national economy as a whole, we consider this our priority," notes Dmitrijs Latisevs, CEO of BlueOrange.
According to the JSC Olainfarm budget, unconsolidated sales are planned to reach 99 million euros in 2019, while consolidated sales are expected at 133 million euros. According to preliminary sales figures, in the first 7 months of 2019, 58% of annual target for unconsolidated sales and 57% of annual target for consolidated sales have been reached.
JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 45 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 60 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.
Additional information:
Janis Dubrovskis
Investor Relations Advisor of JSC Olainfarm
Ph.: +371 29178878
janis.dubrovskis@olainfarm.com
