Established in 1974, UHG is a leading provider of healthcare services in Turkey with approximately 18 hospitals (11 operational and 7 under construction), located across Turkey. The Company is currently owned and managed by the Ofluoglu family, namely Dr. Azmi Ofluoglu and his wife, Alev Ofluoglu. ADM Capital was established in 1998 in the wake of the Asian financial crisis to invest in event-driven and special situations. It is an experienced player in emerging markets with $ 1.7 billion assets under management. ADM espouses an active shareholder approach, implementing financial, operational and strategic initiatives to create value for its investors and the client.

The total project cost is estimated at approximately $120 million of which IFC is proposing a financial package of up to $20 million.

25.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	25.0

* These investment figures are indicative

UHG’s investment plan may include capital expenditures in hospitals in Istanbul, Bursa, Karabuk, Adana, Cizre, Konya, Malatya and Diyarbakir, amongst others.

The project will i) improve access to quality healthcare, particularly for publicly-insured patients; and ii) contribute to government movement to better integrate private businesses into health sector. UHG's national presence is anticipated to extend the reach of services and create stable employment to specialized medical personnel, even beyond the traditional Istanbul market. The project may also be expected to strengthen over time the position of Turkey as a healthcare tourism destination.

The proposed project is consistent with IFC's strategy for Turkey, facilitating foreign direct investment into a large network of hospitals. Through IFC's participation, the Company is anticipated to strengthen its operations through a more sound capital structure; improved corporate governance; and controlled expansion in Turkey and the neighboring countries. IFC's global knowledge sharing and reputational enhancement may provide a positive signaling effect to encourage other private investors to participate in the Turkish healthcare sector.

The key environmental and social issues related to this project include permits, regulatory compliance; environment, health and safety practices during construction, renovation and restructuring; structural design and safety; life and fire safety; emergency preparedness and response; control of air emissions from combustion and other operations; waste management particularly including medical, bio-hazardous and radioactive waste; waste minimization; energy and water conservation; treatment and disposal of liquid effluents; hazardous materials management; occupational health and safety including employee training and monitoring programs; adequacy of human resources policy and practices; community health, safety and security; prevention of nosocomial diseases; potable water supply and treatment; food safety; engagement with communities; respect for patient rights. The appraisal concluded that any impacts will be limited, site-specific and can be addressed by adhering to generally recognized performance standards, guidelines or design criteria. Therefore, this is a Category B project according to IFC’s Environmental and Social Review Procedure.