IFC invests $255 million in Rede D’Or to expand access to healthcare services in Brazil
IFC, a member of the World Bank Group, announced today that it will invest $255 million to support the expansion of Rede D’Or, the largest network of private hospitals in Brazil. IFC’s investment will help expand access to quality healthcare services in Brazil.
IFC will lend $50 million from its own account and arrange another $205 million in syndicated loans. The syndicated facility lenders include Santander, Citibank, Proparco and the IFC Managed Co-Lending Portfolio Program, a new syndications platform that offers institutional investors the ability to passively participate in IFC’s future senior loan portfolio. This is IFC’s second investment in Rede D’Or.
“Good health enables people to study, work and care for their families; therefore investments in healthcare and life sciences are a priority for IFC,” said Patrick Leahy, IFC Senior Manager for Latin America. “Our support to Rede D’Or will broaden access to high quality services in Brazil, and also help promote growth of efficient and effective companies that can contribute to a stronger national health system.”
Brazil spends an amount equal to almost ten percent of its GDP on health care, and expenditures are growing rapidly. Still, the country faces a shortage of hospital capacity and qualified healthcare professionals, hindering efforts to expand access to quality services. The private sector provides healthcare coverage for about 50 million, or one in four Brazilians.
Rede D’Or operates 26 hospitals, with more than 4,000 beds providing multi-specialty services in addition to 32 oncology clinics. The expansion program financed by the facility will increase hospital beds by 1,800, enabling a reach of about 525,000 more patients per year. In addition, Rede D’Or will train and create employment for 12,000 more people, 75 percent of whom are expected to be women, thus helping improve and professionalize healthcare standards in Brazil.
IFC provides investment and advisory services to expand access to quality healthcare, introduce innovations in financing and delivery of services, improve quality and efficiency, and complement public sector efforts to achieve national health goals. IFC has an active portfolio worth almost $800 million in health services, including hospitals, clinics, diagnostic chains, and Health Maintenance Organizations, and life sciences including pharmaceuticals, vaccines, and medical technology. In the fiscal year ended June 2014, IFC-supported health projects provided care for about 27 million patients.
IFC has been investing in Brazil’s private sector since 1956 to address the country’s most critical development challenges, including those of the urbanization, social inclusion, competitiveness and productivity, and management of natural resources.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit www.ifc.org
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