WASHINGTON, D.C., May 1, 1998—The International
Finance Corporation has invested in MSF Holding Limited, a financial company
dedicated to leasing diagnostic and treatment equipment in Latin America.
The project will provide cross-border lease and loan financing to private
hospitals, clinics, and physician groups throughout Latin America, enabling
the beneficiaries to purchase high-tech diagnostic imaging and radiation
therapy equipment. The project will help improve the quality and
cost-efficiency of health care and contribute to the economic development
of the region. It will also increase access to high-tech treatments
for people who depend on public insurance programs or facilities. Although
initially the venture will focus on Brazil, Argentina, and Colombia, its
reach will expand into Mexico and the rest of Latin America.
IFC is providing a loan of up to US$15 million for its own account and
a loan of up to US$25 million for the account of participant banks as co-borrowers.
The Corporation is also making an equity investment in the company
of up to US$2 million for up to 12.5 percent of the initial voting capital
of MSF. DVI, a leading US medical equipment financing company is
the principal sponsor in the joint venture. FMO, the Netherlands
Development Finance Institution and Philadelphia International Equities
Inc., a subsidiary of First Union Corporation are the other investors.
IFC played a key role in structuring this start-up specialized financial
institution. With its expertise in structured finance, IFC has helped
MSF develop effective mechanisms to secure assets in the target countries,
a critical factor in enabling the company to access local and international
funding. It will also help to mobilize additional private capital
into the health care sector and facilitate greater private sector involvement
in health care delivery.
The project is part of IFC’s strategy to promote greater private sector
involvement in health care in Latin America and throughout the world. IFC,
part of the World Bank Group, fosters economic growth in the developing
world by financing private sector investments, mobilizing capital in the
international financial markets and providing technical assistance and
advice to governments and businesses.