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| Apollo Loan |
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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 | 25969 |
| Company name | Apollo Hospitals Enterprise Limited |
| Country | India |
| Sector | Health Care |
| Environmental category | B |
| Department | Health and Education |
| Status | Pending Disbursement |
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| Date SPI disclosed | May 12, 2009 |
| Projected board date | June 15, 2009 |
| Previous Events | Signed: June 18, 2009
Approved: June 17, 2009 |
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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 |
The proposed project by Apollo Hospital Enterprise Limited, the largest private integrated healthcare group in India, involves an investment of up to $200 million over the next several years to fund expansion and equipment purchases for Apollo’s existing hospitals and to develop the Apollo Reach network of hospitals.
Apollo Reach Hospitals have been especially designed for less developed population centers in the semi urban and rural areas of India and are smaller, simpler and offer exhaustive service offerings like Apollo’s existing facilities, deliver similar quality care costing less overall to the patient. |
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| Project sponsor and major shareholders of project company |
| Apollo is the largest private integrated healthcare group in India and recognized as a leader in the management and delivery of high quality tertiary care in Asia. Founded in 1979 by Dr. Prathap C. Reddy, it has grown to become the only provider with a national footprint and offers a wide range of services. In addition to hospitals, it owns and operates clinics, diagnostic centers, pharmacies, and provides consulting, telemedicine and healthcare education and training services. Apollo’s shares have been listed on the Bombay Stock Exchange (since 1983), the National Stock Exchange (since 1992). Dr. Reddy and family members own 31.76% of the shares. |
| Total project cost and amount and nature of IFC's investment |
| The proposed IFC investment is comprised of a senior loan (up to $35 million) and a convertible loan (up to $15 million). The proceeds of the loans shall be used to partially fund the project. |
| Location of project and description of site |
| Apollo is headquartered in Chennai, India. The first three Reach hospitals are located in Karimnagar, Kakinada and Karur. Additional Reach hospitals will be established in semi-urban and rural areas, initially in the states of Andhra Pradesh and Tamil Nadu, India. |
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| Anticipated development impact of the project |
| Apollo’s plans to expand existing facilities and upgrade equipment will enhance the country’s medical infrastructure and improve access to high quality services. In addition, the establishment of the Reach network of hospitals will facilitate access to quality healthcare at an affordable price for people living outside the main urban cities. The Reach network will mark the first significant expansion of a hospital chain into smaller, underserved, cities in India where gaps exist in quality tertiary care. |
| IFC's expected development contribution |
| IFC will provide tailored financing in a difficult market environment. IFC’s participation will send a strong signal of support to the health sector in India, which is experiencing difficulties raising funding in the current environment. |
| Environmental and social issues - Category B |
This investment has been categorized as B based upon application of IFC's Policy on Social and Environmental Sustainability. The key environmental, social and health & safety issues associated with this investment include: Assessment of social and environmental issues and impacts due to the project; Environmental, social, and health and safety management systems at the corporate level to ensure uniform standards across all the Reach hospitals; Life and fire safety standards across all the Reach hospitals, Labor and working conditions; Pollution prevention and abatement – especially with regard to biomedical waste management; and Community health, safety and security.
Further details on the potential environmental and social impact of the project and guidance on how and where information about the project can be obtained are provided in the IFC Environmental & Social Review Summary. |
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| For inquiries about the project, contact: |
Suneeta Reddy, Executive Director - Finance
The Apollo Heart Centre, Group Corporate Office
#156, Greams Road, 4th Floor
Chennai 600 006, India
Telephone: +91 44 2829 2832
Fax: +91 44 2829 1407 |
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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 |
AHEL will disclose this SPI at its website: http://www.apollohospitals.com, as well as locally at the following address:
Apollo Hospitals Enterprise Limited,
Ali Towers, Ground Floor, 55, Greams Road
Chennai – 600 006 |
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