IFC moves into health lending

This is the first transaction for the private health care sector in the region that we've done; it's probably not the last,O said Tomasz Telma, head of the Polish office of the IFC, which is part of the World Bank. NThere aren't that many private health projects in the region that have been externally financed, and we think we've provided a certain quality model for funding and a new way to change how the health care sector operates.O
The loan will be used to fund Medicover's expansion in the region. The company, which operates clinics and outpatient services for individuals and corporate clients, wants to expand to the Czech Republic and the Baltics. It currently has operations in Poland, Hungary, Romania and Estonia. The loan will have a maturity of eight years with a floating rate based on the London Interbank Offered Rate (LIBOR). Telma would not disclose the premium over LIBOR.
The IFC said it decided to fund Medicover to promote private health care in the region. The loan is a boost for Medicover's plans and helped the company when it couldn't get bank financing.
There were attempts to get interest from the banks, but they were not successful,O said Martin Pathuis, managing director for Medicover in Poland. NThe IFC came up through our connections in the United States, as soon as it appeared, then we resigned from further investigations into the commercial banks.O
In addition to being a willing financier, the IFC also offers better rates than banks for a small, growing company, said Dr. Paul Lenz, Medicover's CEO. In addition, Nhaving a tie to the World Bank gives us some prestige,O he added.
From July 1, Medicover will have 15 clinics across Poland, nine for NregularO members, and six NcorporateO ones, including three for Philip Morris.