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Summary of Project Information (SPI)

This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.
Project number23961
Project nameBiocon Group
CountryUkraine
SectorChemicals
DepartmentGlobal Manufacturing & Services
Company nameLLC "CPC" Biocon
Environmental categoryC
Date SPI disclosedOctober 31, 2005
Projected board dateDecember 1, 2005
StatusCompleted
Previous EventsInvested: September 21, 2006
Signed: May 15, 2006
Approved: January 31, 2006

Description of company and purpose of project
The proposed project is an expansion of Chemical-Pharmaceutical Company “Biocon”’s (CPC Biocon or the Company) existing pharmaceutical customs bonded warehouse business in Ukraine. The project includes construction of new warehouse facilities and IT upgrade.

CPC Biocon is a Limited Liability Company established in 1997 in Kiev, Ukraine, providing services on custom clearance, transportation and storage of pharmaceutical products.

Project sponsor and major shareholders of project company
Mr. Alexander Yavorsky is the founder and controlling shareholder (90%) of the Company.

Total project cost and proposed IFC investment
The total project cost is estimated to be about $7 million and IFC’s proposed investment is a loan for IFC’s own account up to $3.5 million.

Location of project and description of site
The project is located at Bortnichy Kiev, Ukraine.

Project Development Impact and IFC's Role
The project has developmental impact in helping a locally owned pharmaceutical distribution company to expand and raise the efficiency of its operations. The project would represent one of IFC’s few investments in a locally owned and managed Ukrainian company.

IFC Role in the project will include:


- providing long-term financing which is currently not available in Ukraine; and
- providing advice in the areas the Group’s overall development strategy and financial reporting.

Environmental and social issues - Category C
This is a category C project according to IFC's environmental and social review procedure. There will be minimal environmental and social impacts associated with this project. Therefore, no further environmental or social analysis is required.

To contact the project company, please write to:
Alexander Yavorsky
29, Bereznyakovskaya St., Kiev 02098, Ukraine
Tel/Fax: + 38 044 574 00 03