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IFC Lends 600 Million Yuan to Weigao to Expand Affordable Dialysis Treatment in China

Beijing, January 30, 2015 —IFC, a member of the World Bank Group, will provide a 600 million yuan (about $96 million) loan to Shandong Weigao Group Medical Polymer Co., a leading Chinese manufacturer of medical devices. The financing will help the company expand its supply of quality and affordable dialysis treatment for tens of thousands of Chinese patients.
The local-currency loan will help Hong Kong-listed Weigao scale up its manufacturing capacity of dialysis medical devices and supplies as well as its network of standalone dialysis centers across China. The project is expected to bring down the treatment cost by substituting certain imported devices with locally produced ones, thus widening access to dialysis treatment for lower- and middle-income households in China. This is the second IFC financing for Weigao following the provision of a $20 million loan to the company in 2007.
“IFC’s continuous support and long-term financing are critical to our current expansion plan,” said Xueli Chen, Chairman of Weigao. “Through the project, we hope to make quality and affordable dialysis treatment available for more families in China.”
Chronic kidney disease is now one of the most prevalent health problems in China, driven by rapid urbanization, changing lifestyle, and an aging population. However, only a small percentage of patients are able to receive dialysis treatment because of limited access in China. Studies have shown that the prevalence of dialysis in China is 30 percent lower than the global average and just about one tenth of that of Japan.
Based in the city of Weihai in Shandong province, Weigao has three major business lines: single-use consumables, orthopedics materials and instruments, and dialysis consumables, machines and provision of dialysis treatment services. The company and its subsidiaries have established a national customer base including more than 3,000 hospitals and 400 blood stations.
“We are keen to provide tailor-made financing to key clients like Weigao that expand critical services to the underserved population,” said Alzbeta Klein, IFC’s Director and Global Industry Co-Head of Manufacturing, Agribusiness and Services. “Moreover, IFC is actively engaged in supporting private sector participation in China’s healthcare sector.”
IFC is the world’s largest multilateral investor in the private healthcare sector in emerging markets, providing more than $3 billion in funding as of October 2014.  
About IFC
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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