Banks, Industry, Latvia, Loan, Markets and Companies, Medicine

The company’s representatives informed that Olainfarm has reached an agreement with BlueOrange Bank on the refinancing of its existing liabilities on improved terms and additional financing for the pharmaceutical company’s development projects and planned investment in fixed assets.

The total loan will amount to EUR 10.5 mln over five years, of which nearly EUR 9 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’s structural funds, Olainfarm said in the statement to the stock exchange.

“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,” said Olainfarm CEO Lauris Macijevskis.

As reported, Olainfarm closed the first half 2019 with EUR 66.326 mln in turnover, which is an increase of 7% against the same period a year ago.

Olainfarm makes medicines, food supplements, active pharmaceutical ingredients and chemical substances. Olainfarm shares are quoted on the Main List of the Nasdaq Riga stock exchange.

At the end of March 2019, BlueOrange Bank was the eighth largest bank in Latvia by assets. The bank’s key shareholder is Latvia’s BBG.