Bavarian Nordic Granted EUR 50 Million Loan from The European Investment Bank

Bavarian Nordic has announced the securing of a loan facility of EUR 50 million from the European Investment Bank (EIB), the long-term lending institution of the European Union owned by its Member States.
 

EIB has granted the loan facility to support the research and development of novel vaccines against Ebola and other infectious diseases as well as cancer immunotherapies. The loan facility provides Bavarian Nordic an opportunity to accelerate its growth strategy with the clinical development of a vaccine against respiratory syncytial virus (RSV) for which no vaccine exists, and prioritizing the development of its CV-301 cancer immunotherapy candidate, which holds promise in multiple cancer indications.
 

Paul Chaplin, President & CEO of Bavarian Nordic, said: "Public investment continues to be a critical component of the advancement of research and development for public health preparedness. Bavarian Nordic has been at the forefront of this for over a decade and we look forward to continuing these efforts well into the future. We are proud to be selected by EIB in support of the fight against infectious disease and cancer. The EIB loan provides a unique opportunity to increase our financial flexibility on attractive terms, and enables us to continue our growth strategy and unlock the potential of our innovative vaccine platform technology."

The loan facility, which is unsecured, is offered on favorable terms and may be utilized in one or more tranches. Under the terms of the agreement, Bavarian Nordic will have up to 18 months to draw on these monies. The loan is a 3–5 year bullet loan and could potentially carry a fixed or variable interest payment, the margin associated with the loan facility is 3.26%.

As a result of the loan facility agreement, the company upgrades its expectations to year-end cash preparedness from DKK 1,100 million to DKK 1,450 million.