Washington D.C., November 14, 2001—The
International Finance Corporation, the private sector arm of the World
Bank, committed US$13 million in funding for the Euromedic group of companies
(“Euromedic”), a leading healthcare provider in Central and Eastern Europe.
The financing – part of Euromedic’s $33 million expansion plan
– will help the company expand its existing network of diagnostic imaging
centers and hemodialysis centers in the region.
The availability of diagnostic technology (computed tomography, magnetic
resonance, ultrasound, etc.) is an important component of healthcare. The
use of diagnostic imaging equipment has grown rapidly across the world
in recent years because it allows physicians to quickly and accurately
diagnose a wide variety of diseases and injuries without exploratory surgery
or other invasive procedures, which are usually more expensive, carry more
risk and are more debilitating for patients.
Hemodialysis (“HD”) is a principal treatment method for patients with
end-stage renal disease, a result of a permanent failure of the kidney
function. The need for HD services is growing among the CEE population,
in line with the global trend.
Through this expansion and further development, Euromedic will speed the
delivery of high-quality imaging that will enable faster and more accurate
treatment of patients. Euromedic hemodialysis centers have the potential
to save the lives of hundreds of patients who would die within weeks of
developing end stage renal disease without access to treatment.
The IFC financing fits in with the Corporation’s global efforts to strengthen
healthcare services in developing countries and emerging markets through
strategic private sector investments. IFC investments in healthcare
are one component of the corporation’s overall strategy of sustainable
investments that lead to the strengthening of the private sector. IFC’s
primary role in the Euromedic investment will be to provide long-term financing,
which is difficult to obtain on reasonable terms for healthcare projects
in Central and Eastern Europe.
Euromedic is owned by: GE Equity, a private equity arm of GE Capital; Dresdner
Emerging Europe L.P (a specialist Central European private equity fund
advised by Dresdner Kleinwort Capital), a private equity arm of Dresdner
Bank; Global Environmental Fund, an international investment firm; and
private investors led by the management of the company
Budapest-based Euromedic, a Dutch group that is widely recognized as a
quality provider of health services, currently has 7 diagnostic imaging
centers in Hungary, three diagnostic and three HD centers in Poland, and
one HD center in Bosnia.
IFC’s mission is to promote sustainable private sector investment in developing
countries, helping to reduce poverty and improve people's lives. IFC
finances private sector investments in the developing world, mobilizes
capital in the international financial markets, and provides technical
assistance and advice to governments and businesses. Since its founding
in 1956, IFC has committed more than $31 billion of its own funds and arranged
$20 billion in syndications for 2,636 companies in 140 developing countries.
IFC’s committed portfolio at the end of FY01 was $14.3 billion.