Jointown Pharma (IFC-41947)

Countries
  • China
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
Active
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."
Borrower
JOINTOWN PHARMACEUTICAL GROUP CO., LTD.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 148.49 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.
Loan Amount (USD)
$ 148.49 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.
Project Cost (USD)
$ 316.00 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 12, 2024

Disclosed by Bank Mar 21, 2019

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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.

According to the bank's website, Jointown Pharmaceutical Group Co., Ltd. (“Jointown” or the “company”) is a major pharmaceutical product distribution company founded in 1999 in China with its headquarter based in Wuhan province and is publicly listed on the Stock Exchange of Shanghai (600998 SHA), with 31 provincial level and 94 prefecture-level pharmaceutical product distribution and logistics centers throughout China.

IFC is looking at providing debt financing to Jointown of up to RMB$1 billion to support its expansion through the construction of up to 5 new product distribution centers and upgrading of 4 existing warehouses in China (the “project”).

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

 The Total Project cost is estimated to be approximately US$316 million. IFC will provide a straight senior local currency loan of RMB1 billion, or approximately US$148 million equivalent, to fund the Project.                 

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The company procures pharmaceutical products and medical equipment, stores in its large network of logistical centers in China, to be subsequently sold to hospitals, clinics, and pharmacies throughout China. While product distribution constitutes the core predominant part of the company’s overall business, Jointown also owns and operates one manufacturing facility in the Beijing area (which produces diabetes and cardiovascular-related medications), and one in Zibo city, Shandong province (which produces medications for mental illnesses, diabetes, and cardiovascular conditions).

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Jointown Pharmaceutical Group Co., Ltd. Client -

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/

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