The project sponsor is BioVeda China Ltd (BioVeda or the Manager), headquartered in Shanghai. BioVeda is managed by a team of experienced professionals, who have been working together in its present form since 2005. IFC invested $4.65 million in the Manager’s $25 million inaugural life sciences venture capital fund (BioChina Fund) in 2005.

The Fund has a target size of $100-150 million. IFC’s investment would be up to $15 million, not to exceed 20% of total capital commitments.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	15.0

* These investment figures are indicative

The Fund is a Cayman Islands exempted limited partnership and will invest primarily in small and medium-sized Chinese companies. The management team is based in Shanghai.

The Fund is expected to deliver strong development impact by: - Supporting fast-growing, high-tech SMEs operating in the life sciences and healthcare industry by providing risk capital and much-needed management expertise; - Encouraging economic development in general, and private sector development in particular, in an industry currently dominated by state-owned enterprises; - Helping to improve people’s lives by encouraging the development of new drugs and medical devices; - Promoting job creation in investee companies; and - Improving companies’ corporate governance and environmental and social standards.

Through its investment in the Fund and participation in the Advisory Board, IFC will have the following roles: - Playing a catalytic role in supporting an emerging fund manager (see below); - Structuring the terms to international standards to attract institutional investors; - Helping to adopt best-practice corporate governance at the fund and portfolio company level; and - Providing additional industry experience on the Fund’s board level.

This project has been classified as Category FI project according to IFC’s Environmental and Social Review Procedure. Considering the nature and sectors of the projects that the fund is expected to invest in, the Applicable Performance Requirements are:

- The IFC FI Exclusion List;
- The applicable National Social and Environmental Laws and regulations; and
- The IFC Performance Standards.

IFC has invested in a previous fund (classified as FI-2) with the fund manager and is reviewing the performance of the same based on submitted information. As part of the appraisal for this project, IFC will also review the capacity of the fund to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). IFC will suggest supplemental actions as required to address any gaps in the SEMS. The fund manager will be required to:

- Develop a formal SEMS, prior to disbursement to the satisfaction of IFC;
- Identify responsible, qualified persons to manage and implement the SEMS;
- Commit to implement the SEMS to ensure that its investments/activities are in compliance with the Applicable Performance Requirements;
- Submit a periodic report to IFC as per a format to be provided by IFC.