Washington D.C./New Delhi, India, June 18, 2009
—IFC, a member of the World Bank Group, is providing $50 million in loans to help India’s Apollo Hospitals Enterprise Ltd bring high-quality health care to numerous smaller cities across the country.
IFC’s financing will be used by Apollo to expand its network of Reach Hospitals, which are designed specifically for less-developed population centers. The company expects to set up 15 new hospitals in the next three years, an initiative that will also create significant employment opportunities for local medical professionals.
“I am delighted to attend the signing of this loan agreement as we see IFC as a long-term partner and value its knowledge of the private health care sector in emerging markets,” said Dr. Prathap Reddy, founder and Executive Chairman of Apollo Hospitals Enterprise Ltd. “This project will help us fulfill Apollo’s vision to deliver medical services where they are needed most.”
Private health care in India is growing rapidly. Increased awareness, a growing and aging population, and changing disease patterns are causing people to seek higher-quality care.
According to the World Health Organization and the Confederation of Indian Industries, the private sector is crucial to the provision of health care and already accounts for over 75 percent of total health care expenditures. Creating an adequate hospital infrastructure alone will require $34 billion in private investment by 2012 in secondary and tertiary care hospitals, medical colleges, nursing, and hospital management schools.
IFC Vice President Rashad Kaldany said, “Apollo has long been one of IFC’s key strategic clients both in the region and globally, given the scope of its operations and its willingness to invest in smaller cities as well as outside the country. The project aligns with our strategy to invest in health care, one of India’s largest service industries where the private sector’s involvement is most critical.”
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
.
About Apollo Hospitals
Apollo Hospitals Enterprise Ltd is a leading provider of health care services in Asia and the largest health care group of companies in India. Its primary business is hospital operation and management with over 7,500 beds across 43 hospitals in India and overseas. The company also has a network of neighborhood diagnostic clinics, pharmacies, health insurance services, and clinical research divisions. For more information, visit
www.apollohospitals.com
.
Apollo Reach Hospitals are already functioning in Karim Nagar and Kakinada in Andhra Pradesh and Karur in Tamil Nadu, with construction at an advanced stage in Bhubaneshwar, Orissa. New projects are being developed in Karaikudi and Tiruchirapalli in Tamil Nadu, Nellore in Andhra Pradesh, and Nasik in Maharashtra.
