New Delhi, September 22, 2016—
IFC, a member of the World Bank Group, is investing $9.1 million in Kanpur-based healthcare service provider Regency Hospital Limited, to help the company expand its healthcare network in the Indian state of Uttar Pradesh. IFC’s first investment in a state with the largest population, low income levels, will enhance access to affordable, quality healthcare, and help create jobs.
Regency Hospital Limited will add 550 operational beds over the next three years; open four new hospitals, and install 15 new dialysis treatment centers across the state as a result of this investment. The project will help create a 1000 direct and indirect jobs for skilled healthcare professionals, including specialist doctors, nurses, and skilled hospital managers and administrators.
“IFC’s investment reflects our commitment to deliver quality, affordable healthcare in the state,” said Atul Kapoor, Chairman and Managing Director, Regency Hospitals Limited. “Regency values IFC’s industry expertise and global network in the healthcare sector,” he added.
Healthcare delivery in India represents 68 percent of the total healthcare market, and is highly fragmented. Uttar Pradesh, one of the largest states in India in terms of area, has only six beds per 10,000 people compared with the national average of 12.5 beds and the global average of 30 beds. Access to integrated healthcare services can reduce losses resulting from unproductive time spent by patients and their families travelling to large cities for medical care.
“Our investment will help the company serve the under-penetrated healthcare market in the densely populated state of Uttar Pradesh,” said Jun Zhang, IFC’s India Country Head. “This project aligns to IFC’s strategy to provide affordable healthcare to the under-served through higher private sector participation,” he added.
IFC is the world's largest multilateral investor in private healthcare, managing an active portfolio of about $1.7 billion worth of health investments. In India, IFC has committed more than $477 in investments in the healthcare sector, representing 28 percent of its global healthcare investment portfolio. IFC has also supported state governments by providing advisory services and bringing in reliable private providers to extend affordable, quality medical care in priority states of India.
India is IFC's top country exposure, globally. IFC's committed portfolio in India is over $5 billion as of June 30, 2016. In FY16, IFC committed $1.1 billion in new investments. In addition to strengthening local capital markets in India, IFC is focused on boosting financing in infrastructure and logistics, promoting financial inclusion, help create conditions to attract increased private capital, and helping structure public-private partnerships.
About Regency
Regency Hospital Limited, a healthcare service provider based in Kanpur, Uttar Pradesh operates a healthcare network that includes tertiary and secondary-care hospitals, a specialty renal-care hospital, dialysis care through a joint venture with Fresenius Medical Care, and Uttar Pradesh’s first specialty oncology-care hospital through a joint venture with Healthcare Global (an IFC investee).
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org
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