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Supporting Private Health Care in Emerging Markets January 2011

Supporting Private Health Care in Emerging Markets January 2011. International Finance Corporation at a glance. IFC Portfolio as of June 30, 2010, by Region. Sub-Saharan Africa 13%. History, ownership and vision Founded in 1956 to foster private sector investment in the developing world

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Supporting Private Health Care in Emerging Markets January 2011

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  1. Supporting Private Health Care in Emerging Markets January 2011

  2. International Finance Corporation at a glance IFC Portfolioas of June 30, 2010, by Region Sub-Saharan Africa 13% History, ownership and vision • Founded in 1956 to foster private sector investment in the developing world • Part of the World Bank Group and owned by its 179 member countries • Vision: That poor people have the opportunity to escape poverty and to improve their lives. Global 1% Europe and Central Asia 25% South Asia 11% Middle East and North Africa 11% Latin America and the Caribbean 25% East Asia and the Pacific 14% Total US$38.9 Billion IFC Financing as of June 30, 2010Total Commitments: US$12.7 billion for own account, US$5.4 billion mobilized IFC Portfolio as of June 30, 2010, by Industry Private Equity and Investment Funds 5% Health and Education 3% Subnational Finance 2% Global ICT 4% Global Financial Markets Group 37% Agribusiness 6% Oil, Gas, Mining, andChemicals 9% Global Manufacturingand Services 17% Infrastructure 16% Total US$38.9 Billion *Includes loans, equity, guarantees, risk management products IFC FY10 Annual Report data

  3. IFC Investment Strategy: 3 Fundamental Principles • Commercially viable investments • Market based • Must produce returns • Value added beyond capital • Opportunity to help clients achieve higher standards of management and social responsibility • Strong development impact • Support projects that will expand much needed services in a socially and environmentally responsible way

  4. IFC has a well established franchise inEurope & Central Asia Fiscal Year 2010 Commitments Historical Commitments US$ millions US$ millions Syndications US$387 Loans US$ 1,807 Guarantees US$539 Equity US$624 US$ 3,357 million Regional Portfolio IFC Portfolio by Country (largest exposure) US$ millions US$ millions Ukraine US$880 Russia US$2,286 Turkey US$2,032 IFC FY10 Annual Report data US$ 12,278 million

  5. IFC Health and Education at a glance • Health and Education Sectors are corporate priorities and pillars of IFC’s Strategy • FY 2010: committed $429mil in 17 projects INVESTMENT TRACK RECORD Health Sector: 97 private health projects in 36 countries US$ 4.8bil of total project value US$ 1.2bil of CHE total investments Education Sector: 67 private education projects in 34 countries US$ 1.5bil of total project value US$ 505mil of CHE total investments 5

  6. Objective: Support Growth of Sustainable Health Care Companies To achieve this objective we • Provide financial advice and innovative financing to private and sub national healthcare and education companies • Use our global industry expertise to advise companies and shape projects and maximize chances of success • Promote best practices and set industry standards • Build credibility of clients in early development stages • Support expansion of our clients to other countries/ regions • Mobilize other private sector investors • Support IFC’s advisory department in their privatization / PPP advisory work • Work with the WB to help countries improve regulatory environment for provision of education and healthcare

  7. IFC has partnered with leading health companies MedLife

  8. MedLife, Romania Sponsor: MedLife, a provider of a range of medical services through a network of 12 outpatient clinics and 3 laboratories in Bucharest Project: Construction of (i) a 100-bed hospital in Bucharest, and (ii) 5 40-bed hospitals in smaller cities in Romania Project Cost: US$24.8 million IFC Support: • IFC provided a US$5 million senior loan and $5 million equity • IFC provided advice on corporate governance Result • MedLife entered the hospital business with completion of a hospital in Bucharest in July 2007 • IFC’s investment raised profile of MedLife in local financial market

  9. Euromedic, Eastern Europe • Sponsor: Euromedic, a leading provider of diagnostic imaging and hemodialysis services throughout Southern, Central and Eastern Europe (Hungary, Poland, Romania & Bosnia). • Project: Project 1:Expansion of diagnostic imaging network in Hungary and establishment of diagnostic and hemodialysis network in Poland. Project 2: Expansion of the network in Poland, Hungary, Romania and Bosnia. Establishment of new networks in region including Croatia. • Project Cost: Project 1: $37 million, Project 2: $26 million • IFC Support: • IFC provided € 24.4 million in senior loans • Result: • IFC provided Euromedic funding not available to it in Eastern Europe • Euromedic’s 21 diagnostic centers increased access to high quality private healthcare for local population • Euromedic was able to integrate its services in the public healthcare system

  10. Hospital Metropolitano S.A., Nicaragua Sponsor: The Pellas Group, one of the largest conglomerates in Central America with diversified presence in various industries. Project: Expansion with new 32-bed hospital building; construction of an oncology center and 67 new medical offices building; refinancing of existing bank debt Project Cost: US$25.9 million IFC Support: • Provided US$10 million senior secured A loan and US$1 million income participating C loan Results: • Access to local high quality healthcare in Nicaragua • Construction of the first integrated oncology center in Nicaragua • Continuous efforts to expand health services to lower income markets • Creation of center of excellence for the country and region

  11. Thank you Michele Shuey Principal Investment Officer, IFC mshuey@ifc.org +1 202 473 8703

  12. IFC’s expert teams work closely with the client Identification & Review Appraisal Investment Review Meeting Negotiation & Documentation BoardApproval Supervision

  13. CHE has full range of financing capabilities Senior Loan B Loan / Syndication Mezzanine Equity StructuredProducts Advisory Services

  14. Health and Education Portfolio at a glance Health portfolio: 54 active projects $866 mm committed Education portfolio: 32 active projects $345 mm committed 14

  15. Acibadem, Turkey • Sponsor: Acibadem Healthcare Group, a leading private healthcare provider in Istanbul, Turkey. The Group owned and operated 2 full service hospitals, 3 outpatient clinics, 1 ophthalmology clinic and 1 central laboratory • Project: Project 1: Construction of an 80-bed oncology / neurosurgery hospital in Istanbul and a 200-bed general hospital in Bursa. Project 2: Expansion of networks in Istanbul, Izmir and Ankara. • Project Cost: Project 1: US$62 million, Project 2: US$113 million • IFC Support: • IFC provided US$60 million long-term debt • Result • Acibadem was able to undertake a significant expansion in healthcare provision (by 378 beds) and, at the same time, demonstrate the credibility of the private health sector in Turkey • Acibadem was successful in becoming the 3rd hospital in Turkey to receive JCI accreditation

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