|
|  |
| Rede D'Or |
|
| 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 | 28144 |
| Company name | Hospital e Maternidade S?o Luiz S.A. |
| Country |
|
| Sector | Hospitals and Clinics |
| Environmental category | B |
| Department | Reg Manufact, Agri & Services, CAF/CLA |
| Status | Active |
|
| Date SPI disclosed | April 19, 2010 |
| Projected board date | May 19, 2010 |
| Previous Events | Invested: December 29, 2011
Signed: July 6, 2010
Approved: July 1, 2010 |
|
| View Environmental & Social Review Summary (ESRS), click here |
|
| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
Founded in 1977, Rede D’Or (“Rede D’Or” or the “Company”) is a for-profit healthcare company that owns a network of46 image centers and laboratories for medical diagnostics and 16 hospitals (including three under construction at the time of appraisal) with over 1,500 beds total, in the states of Rio de Janeiro and Pernambuco.
The company plans to invest over the next 4 to 5 years to support its organic growth strategy to expand existing facilities and build four new hospitals (three already under construction) to reach 2,700 beds total. The group also plans to acquire new hospitals. |
|
| Project sponsor and major shareholders of project company |
| The project sponsor is the Moll family, who controls the Group. Dr. Jorge Moll, founder of the Group and currently the CEO, is a cardiologist who had his specialization degree from Universidade Federal do Rio de Janeiro. |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated at $335 million. The proposed IFC investment consists of an A-Loan amounting up to $40 million. |
| Location of project and description of site |
Rede D’Or is mainly present in the state of Rio de Janeiro, where all labs and hospitals operating under the D’Or brand are located. Rede D’Or also owns 2 hospitals located in the Pernambuco state.
The four new D’Or hospitals will be located in the state of Rio de Janeiro, helping the Group to increase its reach in a number of different neighborhoods across the city of Rio de Janeiro and other important cities across the state. |
|
| Anticipated development impact of the project |
| The project will have significant development impact by: i) demonstrating best practices throughout the medical community; ii) increasing access to high quality medical care; and (iii) and acting as a catalyst for the rationalization of the private health sector in Brazil. |
| IFC's expected development contribution |
| IFC’s role and additionality include: i) provide long term financing, which is still not immediately available in Brazil under current market conditions; ii) share industry knowledge and international best practices; and iii) support the Moll family in strengthening corporate governance standards in D’Or. |
| Environmental and social issues - Category B |
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.
Key environment, health and safety and social aspect of the project which were analyzed during IFC’s review were the Management Systems, Construction and operation of any new hospitals, Employee health and safety activities, Life and fire safety (including escape routes), Certifications, Contingency, Emergency and Evacuation plans, Labor and working conditions, Energy conservation, Solid waste management and Permitting. |
|
| For inquiries about the project, contact: |
Paulo Moll - Director
pamoll@rededor.com.br
+55 21 3239-4747
Rua Voluntarios da Patria, 138 - sobreloja
Botafogo 22270-010
Rio de Janeiro - RJ |
|
| 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 |
Rua Voluntarios da Patria, 138 - sobreloja
Botafogo 22270-010
Rio de Janeiro – RJ |
|
|
|
|