This Project is being processed under the Global Health Platform (GHP).

Project-level:

Stakeholder effect: Increased Access to Healthcare Products. By financing the Project, IFC expects to benefit the middle-to-low income population in Colombia, Peru, Ecuador, and Central America from lower priced high-specialty medicines, consistent and high quality, and greater product variety.

Economy-wide effect: Gross Value-Added – IFC financing will support a manufacturer located in Colombia. The project will help scale the production and delivery of healthcare supplies that is likely to result in the creation of new jobs and/or economic linkages to the rest of the economy.

Market Creation:

Beyond the project, IFC anticipates that its financing could support greater market resilience as spillover effects accrue to the healthcare supply chains in these markets.

• Long-term financing:  IFC is providing a long tenor loan that is not easily available in the market for transactions of this size.  IFC’s long-term commitment to support the Borrowers expansion plan will also send positive signals to the market on the quality of the Management Team and operations, which will help the Company as it continues growing in Colombia and the LAC region.
• Knowledge, innovation and capacity building:  Siegfried-Col aims to continue expanding outside of Colombia. Through the support from IFC’s global industry expertise and client network, IFC can help the Company sharing knowledge on potential partners in new markets given IFC’s healthcare expertise in EMs, global network, and its local presence in many markets.
• Standard-setting by providing advice on E&S Best Practice and Gender Equity: IFC will share international best practices in E&S management and will support the Borrowers to keep improving its standards, including best practices on Gender Inclusion through a formal advisory project currently in discussion.

According to IFC’s Policy on Environmental and Social Sustainability and based on information reviewed by IFC, the investment is classified as Category B as it potentially involves limited adverse environmental or social risks and impacts that are few in number, generally site-specific, largely reversible, and readily addressed through standard mitigation measures.

The main project E&S risks are associated with the manufacturing and commercialization of pharmaceutical products include; i) labor and working conditions including the potential for sexual harassment of the sale workforce; ii) occupational health and safety including worker exposure to health and safety hazards including biological, chemical, physical and ergonomic risks; iii) management hazardous materials, hazardous waste, industrial effluents, post-consumer pharmaceutical waste, air emissions from combustion units and pharmaceutical dust; iv) life and fire safety (including the potential fire and explosions caused by combustible dust) and emergency response; v) work-related traffic accidents; and vi) security management