Investment

IFC Invests Rs 550 Million in Rockland Hospital

IFC will provide $10 million in common shares and $4 million in convertible preferred shares

IFC, a member of the World Bank Group, is partnering with India's Rockland Hospital to help expand its facilities in New Delhi and build the first phase of a new 250-bed hospital in Manesar, Haryana. IFC will provide $10 million in common shares and $4 million in convertible preferred shares to Rockland Hospital. IFC's financing package of $14 million (550 million Indian rupees equivalent) will also be used to launch a television channel focusing on health-related services. The company was advised by the Accelerator Group, a strategic advisory services firm. Rajesh Srivastava, Chairman of Rockland Hospital, said, "We are excited to have IFC assist us in expanding our operations. We see IFC as a long-term strategic partner and value its knowledge of the private healthcare sector in emerging markets." He added that Rockland Hospital also plans to establish diagnostic capabilities in districts around Manesar and reach out to low-income areas. Rockland Hospital was incorporated in 2004 and operates as a 90-bedded multi-specialty hospital. The company's goal is to become a premier healthcare brand in India and a leader in health education, health media and geriatric care. Guy Ellena, IFC Director, Health and Education, said, "This project demonstrates IFC's commitment to social sector development. It also aligns with our strategy to invest in healthcare, one of India's largest service industries where the private sector's involvement is most critical." IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilising private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. In FY07, IFC committed $8.2 billion and mobilised an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. Paolo M Martelli, IFC Director for South Asia, said, "Private healthcare in India is growing rapidly as a result of increasing awareness, a growing and aging population, and changing disease patterns. The investment will help expand medical infrastructure in Haryana, where advanced medical care is scarce."

EH News Bureau