International Finance Corporation (IFC) will lend $40 million (Rs 290 crore) to Indian drugmaker Glenmark Pharmaceuticals Ltd.
The loan to Glenmark is to be issued under IFC's $8 billion fast-track COVID-19 programme, the World Bank investment arm said in a statement. Under this programme, IFC seeks to help countries recover from the brunt of the Coronavirus pandemic.
The investment will allow Glenmark to focus on the production of quality and low-cost medicines.
This is not the first time IFC has invested in the Mumbai-based company.
In June 2016, it invested $75 million in Glenmark as part of the company's larger fundraise to expand its manufacturing capacity, build research and development capacity for new products and reduce debt.
Glenmark, which was founded in 1977 by Gracias Saldanha, is engaged in generics, specialty and over the counter (OTC) businesses with operations in over 50 countries.
Last year, it developed and manufactured the anti-viral Favipiravir for the treatment of mild to moderate COVID-19 infection.
Meanwhile, Glenmark has been shedding some of its assets in the domestic and overseas market. For instance, in November last year, Dr. Reddy’s Laboratories Ltd agreed to acquire select anti-allergy brands from Glenmark in Russia, Ukraine, Kazakhstan and Uzbekistan.
In January last year Glenmark agreed to sell its gynaecology business in India and Nepal for Rs 115 crore in cash to private equity firm True North. This was the second such transaction between True North and Glenmark. The homegrown PE firm had, in 2018, agreed to acquire Glenmark’s orthopaedic and pain management business in India and Nepal, valuing the business at Rs 635 crore ($90 million then).
The loan to Glenmark is the latest commitment by IFC in India. Apart from its direct investments that involve both equity and debt funding, the institution also actively invests in private equity and venture funds.