IFC and IDB invest provide a US$100 million combined financing package to Genomma Lab

The International Finance Corporation (IFC), a member of the World Bank Group, IDB Invest and the Inter-American Development Bank (IDB), both members of the IDB Group have signed an almost US$100 million combined financing package to support the expansion plan of Genomma Lab, a leading regional pharmaceutical and personal care company based in Mexico. Genomma Lab is focused on the development, marketing, distribution and sale of over the counter medicines and personal care products, such as anti-acne and anti-dandruff shampoo.

The loans will finance the construction of Genomma’s first manufacturing plant in Mexico, a state-of-the-art manufacturing facility for pharmaceuticals and personal care products. IFC will also support Genomma’s refinancing program that will strengthen the Company’s balance sheet. IFC signed a US$50 million loan equivalent in Mexican Pesos, and the IDB signed a MXN 900 million loan. Also, IDB Invest is expecting to sign a reverse factoring facility for up to MX$300 million to provide financing to Genomma Lab’s suppliers, most of which are small and medium-sized enterprises.

“Over the counter medicines play an important role in reducing the cost of healthcare, especially in the largely underserved low-income populations across Latin America and the Caribbean,” says Ary Naïm, Country Manager of IFC Mexico. “We are excited to support Genomma’s investment, oriented to expand access to quality and affordable products to the whole region. Mexico is well-placed to play a regional and even a global role in the pharmaceutical sector”.

“We at IDB Invest are thrilled to support Genomma Lab, a regional player in LAC through a multi-product approach. This kind of solutions are in line with our new philosophy to become the partner of choice for companies in the region”, says Rodrigo J. Navas Oreamuno, Head of Manufacturing at IDB Invest.

“We are proud to have both IDB Invest and IFC as strategic partners to support the Company achieve our long-term vision. With our new manufacturing plant, Genomma Lab will be able to focus on lowering its production costs, and thus offering more affordable medicines and products across the region.”, said Mr. Maximo Juda, CEO of the Company. “Both multi-lateral institutions will not only provide long-term financing but also key strategic advice given their extensive industry expertise in pharma and environmental matters”, added Mr. Antonio Zamora Galland, CFO of Genomma Lab

This would be IFC’s and IDB Invest’s first financing in the pharmaceutical sector in Mexico, an area with significant potential given the country’s highly recognized regulatory standards, as well as its well-established knowledge, credibility and cost-competitiveness in pharmaceutical production.

Original source: IFC
Published on 23 July 2018