ALGERIA – Jamjoom Pharmaceuticals Factory Company (Jamjoom Pharma) plans to disburse nearly US$10 million (DZD 1.36 billion) to Al Salam Bank Algeria.
The deal is anticipated to pave the way for Jamjoom Pharma’s expansion plan to open new investment channels for African and Francophone countries.
In related news, Egyptian Prime Minister Mostafa Madbouly recently inaugurated a new pharmaceuticals factory of Saudi Arabian Jamjoom Pharma in Egypt.
The Saudi company has products across eight therapeutic areas including ophthalmology, dermatology, gastrointestinal, cardiovascular, general medicine, and central nervous system.
As part of the loan repayment, the Jamjoom Pharma Board intends to provide a corporate guarantee to Al Salam Bank Algeria to back the issuance of a Shariah-compliant short-term revolving banking facility.
The banking facility aims to finance the remaining payment of the acquisition of the pharmaceutical manufacturing facility and fund its short-term working capital requirements.
According to a bourse statement, Al Salam Bank Algeria will receive financing amounts of up to US$10 million (DZD 1.36 billion) from Jamjoom Pharma.
The corporate guarantee aligns with the Algerian Law and comes in accordance with the company’s shareholding in the JV. In this regard, the Saudi firm will be guaranteeing US$4.96 million (DZD 666.40 million).
This corporate guarantee will help Jamjoom Pharma to further reinforce its position as a key strategic supplier to the Kingdom’s public healthcare system, in line with Vision 2030 and the National Transformation Program.
Additionally, the corporate guarantee comes as Jamjoom Pharma is preparing to sell a 30 percent stake through a domestic initial public offering.
Jamjoom Pharma merges global best practices with local expertise to maximize value creation for key stakeholders, while reinforcing its position as a leading pharmaceutical manufacturing organization in the Middle East and Africa region.
Its strategy is tailored to accelerate and prioritize growth by exploring and expanding into key markets, while creating a positive and lasting impact in the communities the organization operates in.
In the first nine months (9M) of 2023, Jamjoom Pharma recorded 77.58% higher net profits after Zakat and tax at US$66.09 million (SAR 247.90 million), compared to US$37.22 (SAR 139.60 million) in 9M-22.