JGL, Croatia’s largest domestically-owned pharmaceutical company, plans to enter the capital market with a new issue of debt securities. On 12 November 2024, a new bond issue was presented to prospective investors at the JGL Pharma Valley complex with an expected nominal amount of EUR 60 million, with the potential for an increase. It features a fixed annual interest rate, semi-annual interest payments, and a one-time principal repayment after five years.
“JGL has a strong track record of capital market activity, with this being our seventh issuance. The first two were commercial papers, followed by five corporate bond issues since 2007. Our dynamic double-digit growth has consistently demanded substantial financing and skilful investment management. In my view, we have thus far met our obligations and delivered on our promises through tangible results while also generating added value for society and the community,” emphasised Eva Usmiani Capobianco, a member of JGL’s Board of Directors, in her opening remarks.
Unlike previous issues, this new bond is directly tied to sustainable business goals as a Sustainability-Linked Bond (SLB). This reflects JGL’s ongoing commitment to sustainable development and aligns with its business strategy, which includes clearly defined environmental, social, and governance (ESG) objectives. Given its value, this issue marks the largest sustainability-linked bond issuance in Croatia’s private non-financial sector.
“I am very pleased with the strong interest from investors and confident in the success of this new issue. JGL is a successful, agile, smart company whose products are recognised 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 commitment to sustainability and ESG goals, a commitment that was unanimously welcomed by the investors present,” said Mislav Vučić, CEO of JGL, at the bond presentation event.
Alongside refinancing a five-year bond of 17.25 million euros maturing in December, JGL will direct the raised capital towards projects aligned with its ambitious strategy, with potential funding also available for new acquisitions. The turnout of investors at the Investor Day in Rijeka was strong, with significant interest not only from domestic investors but also from major international financial institutions such as the European Bank for Reconstruction and Development.
JGL’s innovative bond issue is designed to achieve specific sustainability goals by 2029. These goals include reducing greenhouse gas emissions through energy efficiency improvements and the use of renewable energy sources, as well as expanding access to specialised screenings for ocular hypertension.
“We hope that such issuances in Croatia will attract more and more issuers and that an increasing number of investors will consider sustainability in their investment decisions. This type of bond not only finances projects crucial to environmental protection but also offers financial appeal that goes beyond traditional investment instruments,” highlighted Anton Barbir, Director of Corporate Finance at JGL.
The joint agents for the issue are Erste & Steiermärkische Bank d.d. and Privredna banka Zagreb d.d., with the legal advisor for the transaction being MAMIĆ PERIĆ REBERSKI RIMAC Law Firm d.o.o. PricewaterhouseCoopers d.o.o. served as the ESG advisor in preparing the framework document for the issuance of sustainability-linked bonds, while the compliance of the framework with the International Capital Market Association (ICMA) principles for sustainability-linked bonds was confirmed by the independent external assessor ISS-Corporate.