DEG finances hospitals in India
Press Release from 2013-06-25 / DEG
• 10 million euros for Ivy Health and Life Sciences Pvt. Ltd
• Four new hospitals with more than 600 beds in the Indian state of Punjab
Only 0.9 hospital beds per 1,000 inhabitants: With this figure, India ranks 136 out of 186 countries on the UN “Human Development Index“. China, by comparison, has 4.2 beds per 1,000 inhabitants. As in many emerging and developing countries, public hospitals in India are unable to cover the growing treatment demand. This is why DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, a subsidiary of KfW, has now provided the private hospital operator Ivy Health and Life Sciences Pvt. Ltd (Ivy) with a quasi-equity loan of 10 million euros. With its financing, DEG supports the growth of the enterprise: by the end of 2014, four new hospitals with more than 600 beds are to be built in the Indian state of Punjab.
At present, Ivy is already operating three hospitals in the rural north of India, where health care supply is particularly poor. The company treats more than 50,000 patients there every year. Ivy is certified with the Indian quality seal of the National Accreditation Board of Hospitals (NABH). The NABH demands high standards for hospitals, for example with regard to medical care and patient care as well as corporate governance. Moreover, Ivy offers free treatment and health care advice for socially disadvantaged people and informs about health care and prevention issues, for example on the topic of breast cancer.
Not only does DEG provide Ivy with capital to improve health care supply in India, it also advises the enterprise with regards to the expansion of its accounting and financial system and in the field of corporate governance. Within the scope of an energy efficiency check, which DEG offers all clients, DEG supports Ivy in its efforts of making the construction and operation of the hospitals energy particularly efficient.
The promotion of private-sector investment in the health care sector is a key issue of DEG. It finances, for example, medical engineering or pharmaceutical-producing companies as well as private hospitals with the aim of further developing the health care sector and improving the population’s medical supply. The current health portfolio of DEG is at around 150 million euros. It includes, among other investments, an equity participation in the “Africa Health Fund“, which invests in small and medium sized enterprises of the health care sector in Africa. DEG is planning to further expand its commitment in the health care sector over the next years.