AHG Bulgaria

completed

Acibadem Health Group (“AHG” or the “sponsor” - http://www.acibademinternational.com) is a prominent hospital group in Turkey, 60 percent owned by IHH Healthcare Berhad, a Malaysia-based healthcare and medical education company with operations in eight countries across Asia, Central and Eastern Europe, Middle East and North Africa. AHG’s 15 percent are indirectly held by Bagan Lalang Ventures Sdn Bhd, a subsidiary of Khazanah Nasional Berhad, a Malaysian sovereign fund. The remaining 25 percent is held by the founding shareholder, Mehmet Ali Aydinlar and family. AHG operates 16 hospitals and 13 medical centers in Turkey with 17,000 employees of whom 2,600 are medical doctors. AHG’s first foreign investment took place in 2011, with the acquisition of 32 percent share of Sistina Hospital in Skopje, Macedonia. AHG also provides management services to Faruk Medical City in Erbil, Iraq.AHG invited IFC to invest in Acibadem City Clinic B.V., a Special Purpose Vehicle (“SPV” or “AHG Bulgaria” or the “Company”) established by AHG, its subsidiary Acibadem Sistina (“Sistina”) and several existing shareholders of City Clinic, a healthcare company in Bulgaria operating three hospitals and one clinic in Sofia, Varna and Burgas to acquire Tokuda Hospital Group running the largest hospital including an outpatient clinic and a small insurance business in Bulgaria. The total project cost is estimated at $111 million (equivalent to EUR 100 million) and IFC is considering an up to $16.7 million (equivalent to EUR 15 million) straight equity investment into AHG Bulgaria.AHG Bulgaria will be comprised of City Clinic hospitals (a 84-bed Cardiovascular Hospital and an outpatient clinic in Sofia covering 4,700 m2 area operational since 2012, an 80-bed Oncology Hospital in Sofia covering 10,700 m2 area operational since 2015, an outpatient clinic in Varna covering 2,300 m2 area, part of the group since 2011, a 31-bed Cardiology Center in Burgas covering 1,396 m2 area operational since 2011 acquired on July 2015; and Tokuda Hospital Group entities including 560-bed Tokuda Hospital in Sofia (covering 55,000 m2 area operational since 2006), Tokuda Medical Center (MC Tokuda), an outpatient clinic operating as separate entity within Tokuda Hospital.The day to day management of AHG Bulgaria will be undertaken by the current City Clinic management team with additional support from AHG headquarters. Further potential expansion plans of AHG Bulgaria, which are at early planning stage, include a greenfield hospital investment in Varna and constructing an extension building adjacent to the premises of Cardiovascular Clinic in Sofia to raise its bed capacity and to create space for administrative units as well as potential acquisition within Bulgaria.