IFC invests $125 million to fund construction of hospitals and clinics in Egypt and Morocco
IFC, a member of the World Bank Group, is the lead arranger for an Islamic financing package of up to $125 million to Humania, a private healthcare company, to help expand health services and improve medical care in Morocco and Egypt.
IFC will provide Humania with a $35 million Islamic facility for its own account and is the lead arranger for the rest of the financing from the Finnish Fund for Industrial Cooperation Ltd (Finnfund), OPEC Fund for International Development, European Bank for Reconstruction and Development, and the IFC Managed Co-Lending Portfolio Program (MCPP). MCPP is an innovative syndications platform that offers institutional investors the ability to passively participate in IFC’s future senior loan portfolio.
The financing will help Humania develop a network of multispecialty hospitals and healthcare assets in Egypt and Morocco. The first phase of its investment program includes three hospitals and a medical tower with nearly 600 inpatient beds and 240 outpatient clinics. The company’s growth is considered key in both countries, where there are shortages of doctors and hospital beds. Egypt’s healthcare sector needs $60 billion in investments by 2050 to meet rising demand for medical services, while Morocco is also facing a need to improve healthcare delivery, especially for women and young children.
"Healthcare and development are inextricably linked," said Sobhi Batterjee, Chairman of Humania. "Our partnership with IFC will allow us to provide world-class healthcare to more patients in Egypt and Morocco, and thus play a role in improving the healthcare systems and well-being of the communities in these countries."
Makarem Batterjee, President of Humania, added, "We go beyond headline numbers about supply and demand. Our focus is as much on quality of care and meeting international benchmarks, as it is about addressing supply shortage. "
The investment by IFC is part of an effort to expand the role of private medical providers in the Middle East and North Africa (MENA), where demand for health services is rising and the public sector cannot meet all needs.
"Over the coming decade, the countries of MENA will need to make substantial investments in medical care to keep their fast-growing populations healthy," said Sérgio Pimenta, IFC’s Vice President for the Middle East and Africa. "Governments alone won't be able to foot the bill. The capital and expertise of the private sector can be used to make sure people in the region get the healthcare they need."