DCM Georgia Healthcare Group Social Bond

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The proposed IFC investment is for an anchor subscription of up to $20 million in Georgian Lari (GEL) equivalent, in a local currency social bond (total value GEL $350 million) to be issued by Georgia Healthcare Group (GHG, the Company). GHG (https://ghg.com.ge/en/), the largest healthcare company in Georgia is 100% owned by Georgia Capital (GCap) which is listed on the London Stock Exchange. It operates a highly integrated business model with four key subsidiaries - Vian (large and specialty hospitals), Georgian Clinics (regional and community hospitals); Evex (polyclinics); and Megalab (diagnostics facilities. GCap is a current IFC client (GCap SL Bond #48231) and its Environmental and Social (E&S) performance in that investment has been satisfactory. IFC’s funds will be directed at outpatient facilities and be used for:(i)                  construction and equipping of a new oncology unit adjacent to and within the land plot of the existing Caucasus Medical Centre (CMC), Tbilisi’s leading referral hospital, and GHG megalab. The new unit will operate within the GHG Vian subsidiary. Key equipment to be provided through the bond comprises up to three cyclotron particle accelerators; one Computed Tomography (CT) simulator, one Magnetic Resonance Imaging (MRI) scanner and 17 chemotherapy beds, with provision made for future installation of Positron Emission Tomography (PET)-CT scanning units; (ii)               procurement and installation of a linear accelerator (LINAC) and ultrasound scanners at Krystyna Kiel Oncology Center, part of the Vian subsidiary;  (iii)             procurement and installation of ultrasounds scanners, and general modernization across the network of  polyclinics; and (iv)              Purchase and installation of lab equipment, computer hardware and software at the diagnostics facilities.The use of proceeds will be split approximately evenly between the construction and equipping of the new outpatient oncology unit and the provision of new equipment to existing outpatient polyclinics, the Krystyna Kiel Oncology Centre and diagnostics facilities While GHG will have overall responsibility for equipment purchase and operational management of the assets, the construction management of the new oncology unit will be outsourced to a specialist healthcare construction management company.