EIB to finance a boost in production levels in Bulgaria with a €100 million loan

Bulgarian Presidency begins with EIB loan of EUR 100 million under Juncker Plan for agri-pharma business Huvepharma

The European Investment Bank (EIB) loan guaranteed by the European Fund for Strategic Investments (EFSI) will create more than 200 jobs in rural areas and strengthen the agriculture sector in Bulgaria. The deal was signed in Sofia in the presence of Commission President Juncker and Prime Minister Borissov.

As the College of Commissioners visit Sofia to mark the beginning of the Bulgarian Presidency of the EU, the EIB has signed a EUR 100 million loan with Bulgarian agri-pharma business Huvepharma to finance a boost in production levels and research and development (R&D) in the area of animal health. The loan is guaranteed by the European Fund for Strategic Investments (EFSI), the central pillar of the Investment Plan for Europe, the Juncker Plan. As a result of this financing, 210 jobs will be created in rural parts of Bulgaria.

Commission President Jean-Claude Juncker and the Prime Minister of Bulgaria Boyko Borissov witnessed the signing of today’s deal by Commission Vice-President Jyrki Katainen, EIB Vice-President Andrew McDowell and Kiril Domuschiev, Chief Executive Officer of Biovet’s parent company Huvepharma.

EIB Vice-President Andrew McDowell commented:

This operation supported by the EIB and the Investment Plan for Europe will strengthen the competitiveness of a leading company in the veterinary sector in Bulgaria, reinforcing Europe’s leading position in the animal health market. This is important as animal health is a key element of the EU farming industry and an area of concern for all European citizens.

Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said:

It is a great pleasure to be here to sign the biggest EFSI transaction in Bulgaria so far: EUR 100 million to Biovet. Thanks to the EU budget guarantee, the EIB was able to offer the company this loan and as a result we will see more R&D activity in rural areas in Bulgaria, leading to growth in the economy and the creation of new jobs. I wish every success to Biovet, and to the Bulgarian Presidency for the next six months.

The project covers the design, construction and management of two new facilities:

  • a new fermentation facility for the manufacturing of active substances, nutritional supplements, enzymes, probiotics and ready medicinal formulations for animal and human health and
  • a new plant for the manufacturing of animal vaccines.

The project supports the capacity expansion of one of the few European players in the poultry and swine segment of animal health. It also supports R&D in the fields of microbiology and the development of new products, such as vaccines and enzymes, as well as process improvement and formulation.

Both new facilities are located close to the existing manufacturing sites of Biovet. The fermentation facility will be located in Peshtera, a town situated in southern Bulgaria, 125 km south-east of Sofia. The vaccine plant will be located in Razgrad, a town situated in north-eastern Bulgaria, approximately 130 km from Varna. The project will be implemented between 2017 and 2019 and will give a boost to local employment by creating 210 additional jobs in areas with rare qualified job opportunities, characterised by high levels of unemployment.

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