Enters into new Loan Agreement to fund expansion

28 January 2015

BEXIMCO PHARMACEUTICALS LTD.

Beximco Pharma enters into a new Loan Agreement to fund expansion

Beximco Pharmaceuticals Limited ("BPL" or "Company"; AIM Symbol: BXP), the fast-growing manufacturer of generic pharmaceutical products and active pharmaceutical ingredients, today announces that it has entered into a new Loan Agreement ("the Loan Agreement") with BHF-Bank Aktiengesellshaft, Frankfurt, Germany ("the Lender") to borrow up to US $51.559 million ("the Loan") to partially finance the purchase of new plant and machinery to expand its production facilities in Dhaka, Bangladesh; it will be covered by Hermes (German Export Credit Agency Euler Hermes Aktiengesellshaft, Hamburg) guarantee.

The Loan, which is secured on the plant and machinery being purchased, will be drawn down in four tranches against delivery and installation of the plant and machinery commencing now and due for completion in June 2016, with commissioning to be completed by September 2016. The Loan will attract interest at the rate of 2.25% per annum above LIBOR; in addition, the Lender will receive management fees and commitment fees. Repayment will be made over five years, in 10 semi-annual payments, commencing for US $5.597 million from the earlier of six months after delivery and installation or 15 January 2016, with repayment of the balance commencing from the earlier of six months after commissioning or 30 March 2017.

The Loan Agreement, the terms of which were agreed by the Company and the Lender in December 2014, was subject to formal approval by the Board of Investment, Bangladesh ("BOI"). The BOI, in its meeting held on 20 January 2015, has approved the agreement.

Nazmul Hassan MP, Managing Director of Beximco Pharmaceuticals, commented:

"We are delighted to have had formal approval for the new Loan Agreement, which enables us to fund the purchase of new plant and machinery to expand our facilities in Dhaka. The investment is aimed at securing the Company's current and future growth, increasing the production capacity and adding new products in the portfolio to cater to the demand of domestic and international markets."

For further information please visit www.beximco-pharma.com or enquire to: 

Beximco Pharma

Nazmul Hassan MP, Managing Director

Tel: +880 2 58611001, ext.20080

SPARK Advisory Partners Limited (Nominated Adviser)

Mark Brady / Sean Wyndham-Quin

Tel: +44 (0)20 3368 3551 / 3555

FTI Consulting

Simon Conway / Victoria Foster Mitchell

Tel: +44 (0)20 3727 1000

Notes to Editors

About Beximco Pharmaceuticals Limited

Founded in 1976 and based in Dhaka, Bangladesh, Beximco Pharma manufactures and sells generic pharmaceutical formulation products and active pharmaceutical ingredients. The Company also undertakes contract manufacturing for multinational and leading global generic pharmaceutical companies. The Company operates from a 23 acre site in Dhaka and has manufacturing facilities for producing various drugs in different delivery systems such as tablets, capsules, liquids, semi-solids, intravenous fluids, metered dose inhalers, dry powder inhalers, sterile ophthalmic drops, prefilled syringes, injectables, nebulizer solutions, oral soluble films etc. Ensuring access to quality medicines is the powerful aspiration that motivates 3,000 employees of the Company.

Beximco Pharma's state-of-the-art manufacturing facilities are certified by global regulatory authorities of Australia, European Union, and Brazil, among others. The Company's products are sold to retail outlets, medical institutions and other pharmaceutical manufacturers in Bangladesh, in regional markets such as Sri Lanka, Nepal, Bhutan, Vietnam, Cambodia and Myanmar and in other markets overseas, principally in Africa, including Mauritius, Kenya, Ghana and Nigeria, Pacific Island, Latin and Central American countries, Middle East, Central Asia, South East Asia, including Singapore, Malaysia, Philippines and Hong Kong, and Europe, Austria and Australia.