São Paulo, Brazil, August 23rd, 2024 – IFC is investing in Afya, a leader in education and solutions for medical practices in Brazil, to support the company's expansion in the country with a focus on regions that face low density of doctors, such as the North and Northeast. This investment will improve access to quality tertiary medical education, thus helping Brazil overcome its healthcare challenges.
This is IFC's first sustainability-linked loan based on social targets in the education sector globally. The price of IFC's loan will be linked to Afya reaching performance target levels in selected social key performance indicators, including free medical consultations for the community and quality of education according to criteria set by Brazil's Ministry of Education.
IFC's long-term up to BRL500 million (approximately $90 million) loan will assist Afya's expansion plan in Brazil, including the integration into its operations of medical schools in the North and Northeast regions. With this loan, IFC aims to encourage the implementation of innovative business models and leverage new technologies while supporting the offer of lifelong learning, particularly among doctors.
In addition to the loan, IFC has advised Afya on the creation of a sustainability-linked finance framework. This framework, validated by an independent second-party opinion provider, helped the company define a focused sustainability strategy, communicate its efforts to contribute to Sustainable Development Goals 3 (health and well-being) and 4 (quality education), and have the adequate mechanisms to measure and benchmark its sustainability performance targets over time.
The unequal distribution of doctors currently faced by Brazil is a pressing issue with far-reaching implications for its healthcare system. To address this obstacle, the country needs a concerted effort to train more doctors, especially in the North and Northeast, where the shortage is most pronounced. By increasing the number of doctors, Brazil could significantly enhance the resilience of its healthcare system and improve access to medical services.
"With IFC's investment, we will be able to meet our expansion objectives, including increasing the number of new Medicine seats by 200 this year. We are also going beyond: in addition to strengthening our capacity to train qualified doctors in the country, we plan to improve primary care health indicators and communities where we operate, confirming our commitment to Sustainable Development Goal 3", says Virgílio Gibbon, Afya's CEO.
"Supporting a relevant educational player in Brazil, such as Afya, will help us contribute to the improvement of tertiary medical education in underserved areas. Afya's goal of developing on-site learning solutions with a strong emphasis on technology is aligned with IFC's objectives to foster quality education and strengthen healthcare services in the country," said Manuel Reyes-Retana, IFC Regional Director for South America. "We hope that this innovative sustainability-linked loan will encourage other players to pursue social targets in the Brazilian education market", he added.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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