Sao Paulo, Brazil, March 29th, 2022—Smaller healthcare providers, doctors, and health professionals will have improved access to finance with an IFC investment aiming to strengthen Brazil's health system by supporting greater market resilience and addressing the continuing challenges of COVID-19.
IFC's financing package of US$150 million to Banco Santander, a leading bank in Brazil, will allow the bank to expand its financing to doctors and healthcare micro, small, and medium enterprises (MSMEs) for working capital and purchase of medical equipment. This is IFC's first Social Loan in healthcare in the Latin America and Caribbean region, and the project is under its Global Health Platform (GHP). GHP is a US$4 billion IFC program with the objective of mobilizing private investment to close the healthcare supply gaps caused by COVID-19.
MSMEs are the backbone of the Brazilian public health system, catering especially to low-income and lower middle-income patients. With a much lower availability of medical technology than the other health services in Brazil, supporting healthcare MSMEs is key to equipping the Brazilian health system for future resilience.
The package will be managed by Santander Financiamentos, the finance company of Santander Brasil, which already has expertise in credit solutions for hospitals, healthcare operators, healthcare centers, medical equipment industry, pharmaceuticals and diagnostic centers.
"IFC's timely contribution will enable us to increase access to financing for healthcare MSMEs and professionals, stimulating the development of services by increasing the availability of medical equipment. This will help modernize and widen the coverage of healthcare services across the country at a time of pressure on the healthcare system," says André Novaes, director of Santander Financiamentos.
"One of IFC's strategic priorities in Brazil is to support access to quality and affordable healthcare. Given the global pandemic, the role of the private sector will be key to bridging the gap in services and supporting healthcare MSMEs scale up services," says Carlos Leiria Pinto, IFC's Country Manager in Brazil. "We are optimistic that IFC's loan will have a catalytic effect, encouraging more social loan issuances while expanding access to medical technology and deepening the local healthcare ecosystem," he adds.
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 2021, IFC committed a record US$31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
About Banco Santander
Santander Brasil started its activities in the country in 1982 and, between mergers and acquisitions, created competitive Wholesale and Retail structures. It is part of Grupo Santander, the largest bank in the euro area by market value, with a relevant presence in 10 key countries in Europe and America. The only international financial institution with a strong presence in Brazil, it has more than 44.8 thousand employees, more than 3.5 thousand branches, and approximately 36.5 thousand self-service terminals, in addition to regional offices that serve more than 28.4 million active customers. Elected the most sustainable bank of the year by Guia Exame Melhores do ESG in 2021, Santander Brasil seeks to increasingly promote inclusive and environmentally responsible businesses.
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