AHG Bulgaria (IFC-38066)

Countries
  • Bulgaria
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Feb 9, 2017
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
ACIBADEM CITY CLINIC B.V.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Education and Health
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 16.13 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 29, 2017

Disclosed by Bank Dec 7, 2016


Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.
Acibadem Health Group ("AHG") invited IFC to invest in Acibadem City Clinic B.V., a Special Purpose Vehicle (“SPV” or “AHG Bulgaria” or the “Company”) established by AHG, its subsidiary Acibadem Sistina (“Sistina”) and several existing shareholders of City Clinic, a healthcare company in Bulgaria operating three hospitals and one clinic in Sofia, Varna and Burgas to acquire Tokuda Hospital Group running the largest hospital including an outpatient clinic and a small insurance business in Bulgaria. The total project cost is estimated at $111 million (equivalent to EUR 100 million) and IFC is considering an up to $16.7 million (equivalent to EUR 15 million) straight equity investment into AHG Bulgaria.
Investment Description
Here you can find a list of individual development financial institutions that finance the project.
AHG is a prominent hospital group in Turkey, 60 percent owned by IHH Healthcare Berhad, a Malaysia-based healthcare and medical education company with operations in eight countries across Asia, Central and Eastern Europe, Middle East and North Africa. AHG's 15 percent are indirectly held by Bagan Lalang Ventures Sdn Bhd, a subsidiary of Khazanah Nasional Berhad, a Malaysian sovereign fund. The remaining 25 percent is held by the founding shareholder, Mehmet Ali Aydinlar and family.AHG operates 16 hospitals and 13 medical centers in Turkey with 17,000 employees of whom 2,600 are medical doctors. AHG's first foreign investment took place in 2011, with the acquisition of 32 percent share of Sistina Hospital in Skopje, Macedonia. AHG also provides management services to Faruk Medical City in Erbil, Iraq.AHG invited IFC to invest in Acibadem City Clinic B.V., a Special Purpose Vehicle ("SPV" or "AHG Bulgaria" or the "Company") established by AHG, its subsidiary Acibadem Sistina ("Sistina") and several existing shareholders of City Clinic, a healthcare company in Bulgaria operating three hospitals and one clinic in Sofia, Varna and Burgas to acquire Tokuda Hospital Group running the largest hospital including an outpatient clinic and a small insurance business in Bulgaria. The total project cost is estimated at $111 million (equivalent to EUR 100 million) and IFC is considering an up to $16.7 million (equivalent to EUR 15 million) straight equity investment into AHG Bulgaria.AHG Bulgaria will be comprised of City Clinic hospitals (a 84-bed Cardiovascular Hospital and an outpatient clinic in Sofia covering 4,700 m2 area operational since 2012, an 80-bed Oncology Hospital in Sofia covering 10,700 m2 area operational since 2015, an outpatient clinic in Varna covering 2,300 m2 area, part of the group since 2011, a 31-bed Cardiology Center in Burgas covering 1,396 m2 area operational since 2011 acquired on July 2015; and Tokuda Hospital Group entities including 560-bed Tokuda Hospital in Sofia (covering 55,000 m2 area operational since 2006), Tokuda Medical Center (MC Tokuda), an outpatient clinic operating as separate entity within Tokuda Hospital.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.
ACCOUNTABILITY MECHANISM OF IFC The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

How it works

How it works