Dar Al Fouad

completed

_x000C_Dar Al Fouad Hospital (DAF, or the Hospital, or the company) is a prime tertiary care hospital located in the 6th of October City, Cairo, Egypt and specializes in a number of fields, including, cardiology, cardiothoracic surgery (e.g. open heart surgery), hepatology, oncology and organ transplants. The Project, a $26 million investment program, will assist DAF in the following: - capacity buildup with expansion from 112 beds to 138 beds and establishment of a training center for para-medicals; - the acquisition of an existing hospital in Cairo; - a regional expansion through the opening of 4 outpatient clinics in the KSA and the Gulf region; - a refinancing of a portion of its existing debt in order to extend maturities. The company is increasing its share capital through a private placement arranged by Standard Chartered Bank (SCB) for an additional 600,000 shares representing 34% of the share capital of DAF. 400,000 shares have already been placed. Project Rationale: The project will support much needed quality healthcare in Egypt and will expand DAF’s high margin/high growth tertiary care services. IFC’s equity/quasi equity investment will contribute to: - further dilute public sector ownership through participation in the private placement; - enhance DAF’s credit profile for a potential IPO which timeframe is estimated to be within the next 3-5 years; and - assist the hospital in its regional growth/credit enhancement with local banks and allow maturity extension of existing debt. The Hospital has been accredited in 2002 with the ISO 9000-2001 certification and has very recently (July 2005), been accredited by the Joint Commission on Accreditation of Healthcare Organizations. Its accreditation was carried out through one appraisal visit by JCAHO, which is unusual, more often two or even three visits are required to complete accreditation.