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| MedLife II |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 29638 |
| Company name | MedLife SA |
| Country |
| Romania |  |
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| Sector | Hospitals and Clinics |
| Environmental category | B |
| Department | Reg Manufact, Agri & Services, EMENA |
| Status | Active |
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| Date SPI disclosed | May 24, 2010 |
| Projected board date | June 24, 2010 |
| Previous Events | Invested: August 23, 2010
Signed: June 30, 2010
Approved: June 29, 2010 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
MedLife has established itself as the leader in the Romanian private health care market and as a unique provider of integrated medical services for corporate clients and individuals. The Company operates the largest private hospital in Romania (Life Memorial Hospital), 4 hyperclinics (large clinics providing an extensive range of high quality clinical services), 5 laboratories, 3 occupational health clinics and 3 specialized clinics (psychiatric, maternal and therapeutic). MedLife also has one of the largest subscriber base in the Romanian corporate market.
MedLife is an existing IFC client and plans to invest up to approximately EUR 20 million in 2010 – 2013 to expand operations in Romania: i) build a 2nd, 120-bed, hospital in Bucharest; ii) add 7 hyperclinics (2 in Bucharest and 5 in smaller cities across Romania) and 2 laboratories (outside Bucharest); and iii) target acquisitions of smaller outpatient clinics, laboratories and hospitals outside Bucharest. |
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| Project sponsor and major shareholders of project company |
The Marcu family, with extensive experience in the health care sector in Romania, founded MedLife and remain the Company’s controlling shareholders. All three family members - Dr. Mihaela Marcu Cristescu, Head of Pediatrics Department; Mr. Mihail Marcu, Chairman of the Board and Dr. Nicolae Marcu, Chief Executive Officer - remain involved and committed to the Company. Together, they control 51% of the Company’s shares.
In November 2009, SGAM Eastern Europe Fund , managed by Amundi Asset Management, a Crédite Agricole / Société Générale company, completed the acquisition of a 36.25% stake in the Company. IFC owns the remaining 12.75% stake in the Company. |
| Total project cost and amount and nature of IFC's investment |
| Total Project Cost is estimated at EUR20 million. The proposed IFC financing is comprised of a EUR10 million senior loan. |
| Location of project and description of site |
| MedLife’s hospital, clinics and laboratories are mainly located in Bucharest, Cluj and Timisoara. With this new investment, MedLife aims to consolidate its leadership position in Bucharest and expand into other cities across Romania. |
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| Anticipated development impact of the project |
- Increase access to quality healthcare services in Romania, especially in cities outside Bucharest;
- Relieve burden on over-crowded public system and support a viable private sector alternative which is increasingly seen as necessary to address healthcare needs in the country;
- Continue to establish benchmarks for quality healthcare, emphasizing preventive over specialized care;
- Provide employment opportunities for qualified professionals (medical and non-medical). |
| IFC's expected development contribution |
IFC will support:
- The consolidation and growth of an existing IFC client by sharing global industry knowledge and experience, a role IFC has played over the past 3 years and that the Company's management and controlling shareholders have come to appreciate;
- The expansion of the Company's network into smaller cities across Romania where its brand is less recognized. |
| Environmental and social issues - Category B |
| Key issues for this project taken into account during appraisal include site selection, land acquisition and permitting; corporate environmental and social management systems, including management of construction and operations of the hospitals/clinics, management of solid and liquid waste, in particular hazardous medical wastes and water quality; air emissions control, occupational health and safety activities, prevention of nosocomial diseases; life and fire safety and consideration of seismic risks within the context of the protection of community health and safety. The appraisal concluded that any impacts will be limited, site-specific and can be addressed by adhering to generally recognized performance standards, guidelines or design criteria. Therefore, this is a Category B project according to IFC’s Environmental and Social Review Procedures. |
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| For inquiries about the project, contact: |
Contact Name: Mr. Dorin Preda
Address: Calea Grivitei nr. 365. Sector 1, Bucharest, Romania
Tel: +40 21 9646
E-mail: dpreda@medlife.ro |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
MED LIFE SA
Calea Grivitei nr. 365. Sector 1, Bucharest, Romania |
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