The money will enable the company to increase its stake in companies in which it has already invested and to meet further acquisition opportunities.
Malin, headed up by former Elan chief executive Kelly Martin, already counts the Irish Strategic Investment Fund (formerly the National Pensions Reserve Fund) and the UK-based Woodford Investment Management as cornerstone backers.
It listed on the Irish Stock Exchange’s junior market, the ESM, last year, before carrying out a number of investments in drug development and biotechnology firms in Ireland, Britain and the US.
“This loan provides Malin with additive non-dilutive capital that can then be judiciously deployed to accelerate the progression of current and prospective Malin investee companies,” said Mr. Martin.
The new EIB facility, which has a seven-year term, will mainly see Malin increase its investments in the European life sciences sector, particularly in Ireland and the UK, where 60% of Malin’s investments are based.
The loan will be disbursed to the company in up to five tranches and Malin said it intends to draw down the first tranche in “the near-term,” although it didn’t give details on the amount or exact timeframe. It marks the first time the EIB has supported the life sciences sector in Ireland.
Malin said the “extensive review” and “rigorous due diligence” process the EIB carried out before providing the debt facility “affirms the quality of Malin’s assets, shareholders, investment strategy and financial controls.”
“Along with the EIB, Malin embraces and enthusiastically supports the philosophy of long-term investment and lending in order to enable tangible innovation throughout the EU,” said Mr. Martin.
“The EIB debt facility is further external validation of Malin’s unique business model. The alignment of long duration capital with substantial and demonstrated operating expertise around a broad array of life science assets, provides an unique opportunity to create and unlock value,” he added.
Malin’s share price was unchanged at €14.75 in Dublin trading yesterday.