Bangkok, Thailand, November 25, 2019 —IFC, a member of the World Bank Group, is investing 909 million Thai baht through private placement of equity shares in Principal Capital Public Company Limited (PRINC), a publicly listed company on the Stock Exchange of Thailand. IFC’s investment will help PRINC to expand its hospital network to serve the middle and lower-middle income patients in Thailand’s rural and frontier regions, creating jobs and promoting energy efficient design and construction in the country.
PRINC currently has seven hospitals in its portfolio and is planning to expand its network to 15 to 20 hospitals with a capacity of 1,800 to 2,000 beds within the next five years. The company is adopting IFC’s EDGE (Excellence in Design for Greater Efficiencies) certification for select hospitals in its network. EDGE helps builders to assess the most cost-effective method of incorporating green building features into their designs.
“IFC’s investment is an affirmation of its support to emerging hospital chains in middle-income countries with increasing demand for quality health care and a growing middle class,” said Dr. Satit Viddayakorn, Chairman of the Executive Committee, PRINC. “Besides long-term financing, IFC’s support will help us formulate environmental and social standards and adopt green building design principles. PRINC also values IFC’s extensive industry expertise and global network in the health care sector.”
“Strengthening healthcare infrastructure is one of IFC’s strategic priorities in Thailand. IFC’s investment will help PRINC expand access to affordable and quality health care for the middle-income segment by reaching the under-penetrated regions in the country,” said Vikram Kumar, IFC Country Manager for Thailand. “The investment aligns to IFC’s strategy to provide affordable healthcare to the under-served through higher private sector participation.”
With Thailand’s rapidly aging population, health care spending for the elderly is expected to increase from 2.1 percent of GDP in 2010 to 2.8 percent of GDP in 2022. The number of people affected by non-communicable diseases such as heart disease, stroke, cancer, and diabetes is also growing . The number of hospital beds per 1,000 people is 2.1 in Thailand compared to the regional average of 3.6. Further, most of the private sector hospital chains are concentrated in Bangkok and Phuket, catering to higher income population, expatriates and medical tourists.
IFC is the largest multilateral investor in health care in developing countries, with investments in more than 210 projects in the past two decades totaling $5 billion. IFC investments in the sector are aimed at promoting greater access to affordable and high-quality health care. Health is a growing part of IFC’s advisory services with programs covering quality improvement, investment climate, green building codes for hospitals , and public-private partnerships.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
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About PRINC
PRINC is one of the leading players in Thailand’s health care industry. In alignment with the philosophy and strong commitment of its founder to increase access to quality health care in secondary provinces, the group currently operates seven hospitals in the central, upper-central, and northern part of Thailand. In the next three years, with the coverage of the north-eastern and the southern part of Thailand, the number of hospitals is expected to increase to 20. Apart from expanding our network, we are also adopting an innovative approach and focusing on our mission of paying back to communities and society through empathy and compassion. With our top management's expertise and keen interest in technology, we aim develop into a digital hospital and utilize advanced technology to offer quality health care and promote sustainability. As part of our latest success story, Princ Paknampo Hospital is the first hospital in Thailand to be awarded with HIMSS EMRAM stage 7, the highest standard level of technology adoption in health care. Our key investment highlights include being the leading hospital operator for middle income patients; demonstrating strong potential for solid financial performance; being the first hospital to have its own cloud architecture in Thailand; and having an experienced team of health-care management professionals. For more information, visi t www.principalcapital.co.th
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