Washington D.C., November 14, 2001
—The International Finance Corporation, the private sector arm of the World Bank, committed US$13 million in funding for the Euromedic group of companies (“Euromedic”), a leading healthcare provider in Central and Eastern Europe. The financing – part of Euromedic’s $33 million expansion plan – will help the company expand its existing network of diagnostic imaging centers and hemodialysis centers in the region.
The availability of diagnostic technology (computed tomography, magnetic resonance, ultrasound, etc.) is an important component of healthcare. The use of diagnostic imaging equipment has grown rapidly across the world in recent years because it allows physicians to quickly and accurately diagnose a wide variety of diseases and injuries without exploratory surgery or other invasive procedures, which are usually more expensive, carry more risk and are more debilitating for patients.
Hemodialysis (“HD”) is a principal treatment method for patients with end-stage renal disease, a result of a permanent failure of the kidney function. The need for HD services is growing among the CEE population, in line with the global trend.
Through this expansion and further development, Euromedic will speed the delivery of high-quality imaging that will enable faster and more accurate treatment of patients. Euromedic hemodialysis centers have the potential to save the lives of hundreds of patients who would die within weeks of developing end stage renal disease without access to treatment.
The IFC financing fits in with the Corporation’s global efforts to strengthen healthcare services in developing countries and emerging markets through strategic private sector investments. IFC investments in healthcare are one component of the corporation’s overall strategy of sustainable investments that lead to the strengthening of the private sector. IFC’s primary role in the Euromedic investment will be to provide long-term financing, which is difficult to obtain on reasonable terms for healthcare projects in Central and Eastern Europe.
Euromedic is owned by: GE Equity, a private equity arm of GE Capital; Dresdner Emerging Europe L.P (a specialist Central European private equity fund advised by Dresdner Kleinwort Capital), a private equity arm of Dresdner Bank; Global Environmental Fund, an international investment firm; and private investors led by the management of the company
Budapest-based Euromedic, a Dutch group that is widely recognized as a quality provider of health services, currently has 7 diagnostic imaging centers in Hungary, three diagnostic and three HD centers in Poland, and one HD center in Bosnia.
IFC’s mission is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses. Since its founding in 1956, IFC has committed more than $31 billion of its own funds and arranged $20 billion in syndications for 2,636 companies in 140 developing countries. IFC’s committed portfolio at the end of FY01 was $14.3 billion.
