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EBRD invests €10 million in Croatia’s first sustainability-linked bond from the pharma sector
Funds will be used to finance JGL’s green and sustainable business expansion
Bank’s investment to foster local capital market development
The European Bank for Reconstruction and Development (EBRD) is supporting the capital market development of Croatia by investing in the country’s third sustainability-linked bond (SLB) and the first such issuance by the Croatian pharmaceutical sector.
The Bank is investing €10 million in a €60 million issue by Jadran Galenski Laboratorij d.d. (JGL), the biggest Croatian-owned pharmaceutical company with a global reach, an innovative leader in the therapeutic areas of cold and flu, ophthalmology, and dermatology.
The company will use the funds to finance its business expansion, while committing to green and sustainable growth. The investment will support the firm’s plans to reduce its greenhouse gas emissions by 9 per cent by 2028, as well as to increase ten-fold the number of beneficiaries of ocular hypertension exams administered in all countries in which JGL operates over the next four years.
The introduction of sustainability-linked financing to JGL’s portfolio of financial instruments is a natural step in the company’s growing commitment to sustainability and transformation, to ensure that it has a greater positive environmental, social and governance (ESG) impact.
In addition, JGL will begin to measure and report Scope 3 emissions and, ultimately, set a Scope 3 target that will be aligned with the Science Based Targets initiative (SBTi). The Scope 3 target is not part of JGL’s SLB framework, but an additional commitment stemming from the company’s engagement with the EBRD. The SLB underscores JGL’s commitment to sustainability within its financial framework, ensuring that capital-raising efforts directly support its ESG goals. This also reflects JGLs dedication to setting an example in the global movement towards responsible and impactful business practices.
Frederic Lucenet, Global Head of Manufacturing and Services at the EBRD, said: “We are delighted to have participated in this successful local green issuance with our long-standing client. JGL’s commitment to reducing Scope 1, 2 and 3 emissions in line with the SBTi is a model we wish to see replicated in our growing life sciences portfolio.”
Mislav Vucic, CEO of JGL said: “JGL is a successful, agile, and smart company whose products are recognized and trusted by patients and consumers alike. Through investments in new markets, advanced technologies, and both current and future employees, we remain committed to our ambitious and sustainable journey. I am particularly pleased that this new bond clearly reflects our dedication to sustainability and ESG goals. The strong interest and favourable final terms achieved are a testament to JGL’s credibility as a trusted issuer in the local capital market and I express gratitude to the EBRD for their trust.”
Headquartered in Rijeka, JGL is a prominent export-oriented pharmaceutical company, with more than 1,300 employees. Serving a large customer base, it has a broad geographical footprint, catering to 60 health product markets in 11 countries.
The EBRD is a leading institutional investor in Croatia. The Bank has invested more than €4.8 billion in the country to date. Its focus in Croatia is on supporting private-sector competitiveness, developing the country’s capital markets and promoting the commercialisation of public companies. The EBRD combines its investments with support for policies that promote a more enabling business environment. |
