International Finance Corporation, part of the world bank has offered to invest $30 Million in Hyderabad-based Vaccine Manufacturer- Biological E Ltd which is working towards the development of COVID-19 vaccine.
This is not the first time that IFC has offered a financial hand to Biological E. In 2017, IFC disclosed that it is planning to invest up to $60 million (387 crores) in Biological E through a combination of debt financing and subscription to non-convertible debentures.
When the whole world is in crisis and every country is in the hurry of developing COVID 19 vaccine as soon as possible to save people dying at a fast pace. This move of IFC to lend $30 million to Biological E to facilitate the development of corona vaccine will prove out to be very helpful in the near future.
Biological E. Limited
Biological E. Limited was founded in 1953 by Dr D.V.K. Raju and Mr G.A.N. Raju. It was the first company among Private sectors in India to provide and manufacture biological products. Currently, the company is promoted and managed by Director and Chief Executive Officer Mahima Datla https://www.linkedin.com/in/mahima-datla-41a18827/ who also enjoys the majority of stakes of the company. The company currently, is in the stage and process of developing COVID-19 vaccine.
Biological provides its manufactured products not only in India but the company is also engaged with the markets of other developing and underdeveloped countries through supplies to global organisations such as UNICEF and the Global Alliance for Vaccines and Immunizations and sometimes they are also directly linked to several country’s markets.
The loan that the company has received from IFC will help in increasing the availability of vaccines in India so that it will become accessible to everyone. The loan will help the company in expanding its manufacturing processes of COVID 19 vaccine and for the exposure of the company to different elements and raw materials that are being required for the vaccine development.
Moreover, IFC is also said it is looking forward to becoming part of n the development and availability of a potential inoculation for the novel coronavirus. The expansion is planned to be held on the company’s premises in Shameerpet region outside of Hyderabad.
“The company invests significantly in research and development which is key to building a pipeline of products for under-met medical needs. It plans to launch several new products in India and other developing countries over the next five years” said IFC in a disclosure.
Other IFC ventures in India
IFC’s loan to Biological E. Limited is the latest venture of IFC in India. Also, IFC invested up to $35 million (around 263 crores) by showing interest in paper manufacturer JK Paper Ltd.
IFC proposed in May, to make a debt investment of up to $ 100 million to NBFC firm Fullerton India Credit Company Ltd (FICCL), which is owned by Singapore state investment firm Temasek.