JGL Introduces SLB ‘Sustainable’ Bond of 60 Million Euros

JGL, the largest pharmaceutical company in domestic ownership, intends to enter the capital market with a new issuance of debt securities. In the JGL Pharma Valley complex, a new bond issuance with an expected nominal amount of 60 million euros was presented to interested investors, with the possibility of increasing the amount and a fixed annual interest rate with semi-annual interest payments and a one-time principal maturity after five years.

– JGL has a long history of issuing securities in the capital market. This is our seventh issuance; the first two were commercial papers, and this is the fifth issuance of corporate bonds since 2007. Our propulsive growth with double-digit figures has always been financially demanding and required skillful balancing of investments. I believe that we have fulfilled our obligations and promises with results so far, but also created added value for society and the community – emphasized Eva Usmiani Capobianco, a member of JGL’s Management Board, in her opening address.

Unlike previous issuances, the new bond is directly linked to sustainable business (Sustainability Linked Bond – SLB), confirming JGL’s continuous development towards sustainable business practices, as well as a business strategy with clearly defined environmental, social, and governance (ESG) goals. Given its value, this issuance represents the largest issuance of bonds linked to sustainable business in the private non-financial sector of the Republic of Croatia.

– I am very pleased with the interest shown by investors and believe in the success of the new issuance. JGL is a successful, fast, smart company whose products patients and consumers trust. With investments in new markets and technologies, as well as investments in existing and new employees, we continue to walk our ambitious and sustainable path. I am particularly pleased that with the new bond we clearly demonstrate our commitment to sustainability and ESG goals, which were unanimously welcomed by the gathered investors – stated Mislav Vučić, CEO of JGL, on the occasion of the bond presentation.

In addition to refinancing a five-year bond worth 17.25 million euros, which matures in December, JGL will invest the raised capital in projects from its ambitious strategy, as well as potentially financing new acquisitions. The response from investors at the Investor Day in Rijeka was significant, and in addition to domestic investors, large international financial institutions such as the European Bank for Reconstruction and Development also showed interest.

JGL’s innovative bond issuance is aimed at achieving specific sustainability goals by 2029. These include reducing greenhouse gas emissions through improvements in energy efficiency and the use of renewable energy sources, as well as increasing the availability of specialized examinations for ocular hypertension.

– We hope that such issuances in Croatia will attract more issuers, and that more investors will consider sustainability in their investments. This type of bond allows financing projects that are crucial for environmental protection, but also offers financial attractiveness that surpasses traditional investment instruments – emphasized Anton Barbir, Director of Corporate Finance at JGL.

The joint agents of the issuance are Erste & Steiermärkische Bank d.d. and Privredna banka Zagreb d.d., while the transaction legal advisor is MAMIĆ PERIĆ REBERSKI RIMAC Law Firm d.o.o. The ESG advisor in the preparation of the framework document for the issuance of bonds linked to sustainable business was PricewaterhouseCoopers d.o.o., while the compliance of the framework document with the principles of bonds linked to sustainable business according to the International Capital Market Association (ICMA) was confirmed by an independent external evaluator ISS-Corporate.