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The project will finance research, development, and innovation (RDI) investments by Biovet AD and Huvepharma EOOD (the Borrowers) in Bulgaria and other EU Member States.
The aim is to support the borrowers' RDI investments in feed additives, complex veterinary pharmaceutical products and vaccines. Improving animal health enhances food safety, reduces antibiotic resistance by promoting the use of vaccines, and supports sustainable livestock production. It also contributes to the expansion of EU-based animal health manufacturing.
The financing of this project by the European Investment Bank (EIB) is justified from a public policy perspective due to its strong alignment with the EU's key priorities, including innovation, competitiveness, and cohesion. The project addresses critical public health concerns by improving animal health, which in turn enhances food safety, reduces antibiotic resistance, supports sustainable livestock production, and leads to reduction of greenhouse gases. Located in Bulgaria, a cohesion region, the project contributes to the EU's goal of fostering economic and social cohesion by creating highly skilled jobs and strengthening the local economy. It also contributes to several UN Sustainable Development Goals (SDGs), including good health (SDG3), gender equality (SDG5), decent work (SDG8), and industry innovation (SDG9), making it a high-impact investment in both regional and global terms.
The project would not be carried out to the same extent without support from the InvestEU Fund. Its financing (i) contributes to the InvestEU primary objectives of research, development and innovation, health and Midcaps, with cross-cutting objectives of economic and social cohesion; (ii) addresses the failure in financial markets for RDI-driven companies suffering from systemic shortages of large, non-dilutive financing options for growth investments requiring a longer time horizon with inherently higher levels of risks. RDI is associated with externalities, i.e. positive knowledge and technology externalities, through the creation of innovative processes, products and services and through skills development and upgrading, which the Company generally fails to internalize, leading to underinvestment.
The EIB loan provides flexible financing and contributes to the Promoter's average financing maturity extension. In addition, EIB has a catalytic effect on the commercial banks by signalling creditworthiness of the Borrower/Guarantors and the soundness of the project in a volatile market context.
The project's RDI activities are a central part of the promoter's operations and will be embedded in the existing organisational and management structure. The project will be carried out in existing and authorised research facilities. The operating procedures in place are in line with best industry standards and are regularly audited externally. The promoter utilises an environmental management system and safety programmes and is conducting its business in compliance with all applicable environmental laws and regulations. It operates using Good Manufacturing Practices (GMPs), and its manufacturing facilities are designed and constructed according to EU and FDA (the US Food and Drug Administration) requirements. Additionally, the promoter has the following certifications: ISO 9001, ISO 14001, ISO 45001, ISO 22716 and FSSC 220.
The promoter/borrowers have been assessed by the EIB as private entities that do not operate within the utility sector and do not hold concessions. Consequently, they are not subject to the EU Public Procurement Directives. Their activities are RDI, industrial and commercial in nature, and they operate under normal market conditions. Therefore, they are considered subject to private procurement rules, and their procurement practices align with industry standards, fulfilling the criteria of economy and efficiency. Under these conditions, the procurement procedures applied and to be applied by the promoter and borrowers are deemed appropriate for the project and satisfactory to the EIB.