The project sponsors are Dr. Ralph Ashorn and Mr. Gleb Mikhailik, the founders of the Russian operations, operating since 1995. The Sponsors plan to merge the existing Russian operating companies into a new Russian joint stock company which will be the IFC Borrower (NewCo or the Borrower). While the final shareholding structure of the NewCo is not yet determined, the sponsors will have majority control.

The proposed project is estimated at a total cost of approximately $49.0 million. Proposed IFC investment will include a RUB A Loan of up to $13 million equivalent, a RUB B Loan of up to $13 million equivalent and a possible equity investment of up to $4 million equivalent for IFC’s own account.

12.50 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	12.50
Equity

* These investment figures are indicative

The ten satellite clinics will be located in rented facilities in various districts of St. Petersburg, Russia. To date, three clinics have been opened in the Vyborgsky, Kirovsky and Primorsky districts of the city. The Primorsky clinic will cover a total area of 16,500 m2 in a Greenfield 5-7 story building. The Kazan clinic and hospital will be located in an existing building in central Kazan, in the Tartarstan region of Russia.

Supporting the expansion of the company in Russia will have a strong development impact by widening access to quality healthcare, particularly services not commonly available e.g. infertility services, and establishing benchmarks for administrative and patient care practices in the country’s nascent private health sector.

IFC’s main role is as a provider of flexible, long-term financing, attractively priced in a market where there is limited investor appetite for investment in private health sector in Russia at good terms. IFC also has the opportunity to provide certain value-added services and advice requested by the client – financial and accounting management, restructuring and merger negotiations, insurance coverage and corporate governance. IFC will also be supporting the first health public private partnership in Kazan.

This project, a repeat investment, is being reviewed as a direct investment according to IFC''s Social and Environmental Sustainability Policy. Based on a review of project information, site visits and meetings with the sponsor, the following Performance Standards (PS) are deemed to be applicable:

- PS1: Social and Environmental Assessment and Management Systems with respect to corporate environmental, social, hygiene and health and safety management systems, including national and local government permitting requirements;
- PS2: Labor and Working Conditions including occupational health and safety and training programs for employees and third party construction workers;
- PS3: Pollution Prevention and Abatement including particularly waste management;
- PS4: Community Health, Safety and Security including fire and life safety, emergency response, and community consultation and disclosure;
- PS8: Cultural Heritage with respect to the redevelopment of medical facilities in the city of Kazan.

IFC will determine the extent of any gaps in the above Performance Standards and the client will address these via appropriate Action Plans. The existing investment has excellent environmental and social performance.