Healthcare Finance in Underdeveloped Regions (ADB-49200-001)

Countries
  • China
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Sep 29, 2015
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Yingda International Leasing
The holder of the loan, grant, or other investment.
Sectors
  • Education and Health
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, etc.
Investment Amount (USD)
$ 75.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 75.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Aug 11, 2017

Disclosed by Bank Jun 7, 2016


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Project Description
A senior secured loan of up to $75 million (or CNY equivalent) with 5 years tenor to Yingda International Leasing (YIL) in the PRC is proposed. The proceeds will be used to finance hospital facilities in counties or lower tier cities (i.e., excluding provincial capital cities) in the central and western regions of the PRC. The project will finance the direct lease of modern medical equipment as well as hospital fixed assets investments through sale and lease back transactions. According to the latest WHO data, the total health care expenditure accounted for 5.4% of the GDP in the PRC in 2012, significant lower than the global average of 9.2%. The healthcare investments are lower in the less developed central and western regions, leading to poorer facilities. There are 2.96 and 3.10 hospital beds per thousand populations in the central region and western region respectively, while the ratio was 3.17 in the eastern region. In the central and western regions, the average assets per hospital were CNY79.9 million and CNY68.9 million, respectively, significantly lower than the average of CNY122.6 million in the eastern region.
Investment Description
  • Asian Development Bank (ADB)
Contact Information
ACCOUNTABILITY MECHANISM OF ADB The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main