25324 - Hygeia Expansion

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Summary of Proposed Investment

Project Number

25324

Company Name

HYGEIA NIGERIA LIMITED

Date SPI Disclosed

Oct 18, 2006

Country

Nigeria

Industry

Health, Education and Life Sciences

Projected Board Date

Nov 17, 2006

Status

Completed

Sector

Hospitals and Clinics

Department

Gbl Ind, Manufact, Agribus & Services

Environmental Category

B - Limited

Previous Events

Approved : Jan 25, 2007
Signed : Jan 30, 2007
Invested : Jul 26, 2007

Project Description

This proposed project involves an expansion of a number of operations of Hygeia Limited (the company). Hygeia is a private sector provider of hospital and health maintenance organization (HMO) services in Nigeria. The key elements of the proposed project include:

- the upgrade, renovation and expansion of three Hygeia hospitals: Lagoon Apapa, Lagoon IV and Lagoon Ikeja.
- the establishment of five regional offices and the expansion of information technology infrastructure in relation to its HMO business;
- partial refinancing of an existing loan used to purchase MRI, CT Scan, and other critical care equipment in 2004/5; and
- funding of working capital to facilitate the company’s expansion program.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	3.04
Equity

Development Impact

Supporting Hygeia for the expansion of its HMO and hospital business is expected to have significant development impact. First, it would raise the overall quality and accessibility of private medical services in Nigeria. Second, IFC’s support, particularly of Hygeia’s HMO business, is likely to improve the perception of Nigeria’s nascent health insurance program – boosting the credibility of this very important sector. Furthermore, this loan is expected to be IFC’s first naira-denominated loan. IFC’s involvement in the currency swap markets in Nigeria will assist in developing this aspect of the financial markets in that country. Finally, this investment in Hygeia’s expansion will bring additional employment and tax revenue to Nigeria.

IFC’s support of Hygeia will assist in the development of a strong and viable private healthcare sector in Nigeria. IFC’s investment in Hygeia will also signal confidence in the company to other potential investors. This should assist Hygeia in further developing its equity base and in securing the necessary finance to fund its future expansion. Finally, as discussed above, the naira-denominated loan proposed for this investment will be IFC’s first local currency loan in Nigeria. IFC’s involvement in the currency swap markets in Nigeria will assist in developing this aspect of the financial markets in that country. IFC’s loan will also be of a longer tenor than is otherwise available for healthcare companies in Nigeria.

This is a category B project according to IFC''s environmental and social review procedure. A summary of IFC’s environmental review findings for the project including the rationale for the B categorization is publicly available in the Environmental and Social Review Summary (ESRS) available on the IFC''s website. The Environmental Action Plan (EAP), which is a companion document to the ESRS, contains specific tasks that the client will undertake to mitigate perceived risks and impacts from the project, and to ensure compliance with IFC’s performance standards.

Contacts

For Inquiries About the Project, Contact

Fola Layoe, Managing Director
Hygeia HMO
11A, Idejo Street
Victoria Island
Lagos, Nigeria
Website: www.hygeiahmo.com

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors' consideration of the proposed transaction. It is not an offer of shares to the public and is intended solely to enhance the transparency of IFC’s activities. This document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. The following SPI is disclosed in accordance with IFC’s Policy on Disclosure of Information that went into effect April 30, 2006.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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