Beijing, August 29, 2012
— IFC, a member of the World Bank Group, has agreed to provide 300 million Chinese yuan ($47 million) to Fosun Pharma to expand its business and help increase the availability of quality and affordable drugs in China and other developing countries.
Fosun Pharma is one of China’s leading drug companies, manufacturing both generic and innovative medicines. It is also one of the largest suppliers of anti-malaria drugs to developing countries through international institutions like the World Health Organization and the International Red Cross. To date, it has provided anti-malaria drugs to more than 300 million people in Africa and Southeast Asia.
The loan is IFC’s second to Fosun Pharma. In 2006, IFC provided 320 million yuan through the issuance of a local-currency bond or “panda bond.” That financing helped the company expand its manufacturing and distribution businesses.
“IFC’s financing has supported Fosun Pharma’s growth in the last few years,” said Chen Qiyu, Chairman of Fosun Pharma. “Now we are aiming to increase our presence globally to become a competitive Chinese player worldwide. IFC’s global industry knowledge and long-term financing and will enable us to operate and expand our pharmaceutical business in a challenging market environment.”
IFC’s loan will provide long-term funding to the company’s subsidiaries in China to help upgrade manufacturing facilities, including those located in less-developed regions, and further enhance product performance.
“We are keen to provide financing to key Chinese private sector clients that create thousands of jobs as they grow and cater to the needs of underserved populations,” said IFC’s Director for East Asia and the Pacific Sérgio Pimenta. “By supporting companies like Fosun Pharma, we are helping to ensure that the benefits of economic growth reach the poor.”
So far, Fosun Pharma’s subsidiary, Guilin Pharma, has obtained the prequalification certification of the World Health Organization for its five anti-malaria drugs that enhance its position as a globally leading company in the anti-malaria fight.
The new loan will be funded through IFC’s landmark Renminbi Swap Facility with Chinese banks. The facility allows IFC to provide loans in local currency to meet specific financing needs of its private sector clients and help them avoid foreign-exchange risks. IFC is the first multilateral institution authorized to conduct transactions with Chinese banks in the domestic currency swap market.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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