Hospitaria Tenedora, S.A.P.I. de C.V. (the “Company”) has two Sponsors, namely Ambar Capital (financial partner) and Ginequito (operational partner). Ambar Capital is a Mexican family fund (the “Fund”) based in Monterrey, which was incorporated in 2009, and owns 50% of Hospitaria and 100% of Binaria. The Fund focuses on the education, health and technology sectors, and has a portfolio of around $25 million in nine companies. Ginequito owns 50% of Hospitaria and represents one of the leading hospitals in Monterrey. The hospital has over 35 years of experience and specializes in gynecology and obstetrics. It is a private hospital and is owned by 95 doctors.

The total Project cost is approximately $32 million. The proposed IFC investment consists of an approximately $5.5 million A Loan and an approximately $5.5 million C Loan in Mexican Pesos for IFC’s own account.

10.44 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	10.44
Equity

* These investment figures are indicative

Binaria will be constructed in the northern part of Monterrey, in the Municipality of Escobedo, which represents an area with high rates of demographic and economic growth.

Provision of quality health care services to an underserved area: Both Ambar Capital and Ginequito are committed to providing quality health care services to an area which continues to grow substantially, without access to quality healthcare. The hospital will represent the first secondary care hospital in the area, thus improving the quality of health care to the local population. Demonstration effect: The envisioned Project is innovative in comprising a fully integrated medical complex and designed with energy efficient systems. This is expected to have a demonstration effect for further health care projects in Mexico. IFC will assist in implementing and encouraging further "green" construction. Strong social commitment: Ginequito has historically shown a strong commitment towards the community. The expansion will allow for Ginequito to continue its contribution to the community. Urban frontier: The hospital will be constructed in an area of Monterrey, which does not have quality medical services readily available. The local population living in the northern part of Monterrey will benefit significantly from the planned hospital building and adjacent medical facilities.

Long-term financing: IFC will act as a provider of long-term financing, which is currently not broadly available by Mexican commercial banks to health sector projects. IFC's expertise in the health sector enables it to understand the risks associated to health projects and properly design an ad hoc structure, especially for greenfield projects. By funding the Project, IFC will provide an adequate grace period and tenor, as well as local currency funding. Technical and industry knowledge: IFC's knowledge in the private health care sector in emerging markets and experience in the health care sector, including the understanding of greenfield health care operations, will benefit the Project sponsors. Environmental and social best practices: IFC's involvement will assist Hospitaria in establishing environmental best practices and sustainability, which will raise the standards for other health care companies in the region. Given the hospital's postive climate impact, Hospitaria represents IFC's first green building hospital constructed. Long-term partnership: The Sponsors view IFC as a long-term partner and the proposed transaction will be the first step towards a long-standing relationship that will generate further investment opportunities for IFC as the Company expands to other areas in Mexico.

This is a Category B project according to IFC’s Environmental and Social Review Procedure, because of the limited number of adverse impacts that may occur which are generally site specific and can be avoided or mitigated by adhering to IFC’s Performance Standards, good international industry practice, guidelines or design criteria.

Identified Applicable Performance Standards
While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards:

PS1: Social and Environmental Assessment and Management Systems
PS2: Labor and Working Conditions
PS3: Pollution Prevention and Abatement
PS4: Community Health and Safety

The WBG EH&S General Guidelines, as well as the EH&S Guidelines for Health Care Facilities also apply. Issues related to the following IFC Performance Standards were not identified during IFC’s review:

PS5: Land Acquisition and Involuntary Resettlement: the land for the development was obtained from a housing developer a number of years ago under a willing buyer-willing seller scenario; no one was living on, or making a living from the land at that time.
PS6: Biodiversity Conservation and Sustainable Natural Resource Management: Hospitaria’s proposed new medical center will not have impacts upon biodiversity or natural resources due to the site being located within an established industrial/commercial area located in the north of Monterrey.
PS7: Indigenous Peoples: No Indigenous People are impacted by the location of the proposed project.
PS8: Cultural Heritage: No sites of cultural heritage are impacted by the location of the development.