The Moll Family has a controlling stake of 59.6% of the Company’s shares. Following the change in the Brazilian law, in early 2015, that had prevented foreign investments in the health sector, private equity funds Carlyle and GIC now hold 12.3% and 26.9% of the Company, respectively, after acquiring primary and secondary shares last year. The remaining 1.2% of the shares belong to minorities’ shareholders.

The project involves (i) 8 and 9-year senior loans in the aggregated amount of US$100 million from its own accounts; (ii) a syndicated loan of US$120 million; and (iii) a 9-year C loan of up to US$30 million.

 Company has an investment plan of approximately US$1.0 billion, composed mainly of construction of new buildings, expansion of existing hospitals and purchase of medical equipment that will be financed through a combination of debt, equity and cash flow generation.

130.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	130.0
Equity

* These investment figures are indicative

The project comprises new hospitals and expansion of existing facilities located in the states of Rio de Janeiro, São Paulo, Pernambuco and Distrito Federal, which are states in which Rede D’Or already operates.

- Act as a catalyst for the professionalization of the private hospital sector in Brazil, through the implementation of Rede Dor's best practices in medical, E&S and corporate governance standards into the newly acquired hospitals; - Expand access to high quality medical care, as demand for high-quality tertiary care is increasing in Brazil, and international standards of care are still limited and insufficient throughout the country; - Enhance cost competitiveness by supporting a scalable business model in a very fragmented and inefficient sector; - Potential for a climate friendly IFC investment, through the implementation of greenbuilding standards in the new greenfield facilities; - Employment of local professionals, most of them women (75% of the Company's workforce); - Address Brazil's important skill gap issue by providing adequate training to the workforce through Instituto D'Or (IDOR). IDOR is also initiating an undergraduate education program and has also initiatives in specialization programs and partnerships with several national and international universities; - Support Zika-related research undertaken by IDOR with results getting international exposure and similar research being extended into the future; - Improve the quality of the public healthcare system, as Rede D'Or has a partnership with the Rio de Janeiro State Government to manage a 80-bed pediatric hospital that has an average of 17 daily procedures, ranging from medium to high complexity surgeries such as transplants and cancer treatment.

- Important demonstration factor by reinforcing IFC's confidence on the long term fundamentals of the Company, the sector and the country in spite of the current adverse macroeconomic environment; - Provide long-term financing, potentially in local currency, in a period of capital scarcity in the local financial market; - Diversification on sources of funds as the number of financial institutions capable of providing loans at sizeable amounts and at competitive rates in local currency in Brazil has reduced; - Further develop the relationship to continue to benefit from IFC's global expertise and reach by sharing knowledge and best practices.

This is a category B project according to IFC’s Environmental and Social Review Procedure because the proposed business activities are considered to involve potentially limited adverse environmental or social risks and impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures.

Please see the Environmental & Social Review Summary for further details.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.