Weigao Asia

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Shandong Weigao Group Medical Polymer Company Limited, (“Weigao” or the “Company” - http://en.weigaogroup.com/index.php/home/category/index/sc_id/index.php) listed on the Hong Kong Stock Exchange, is a leading domestic manufacturer of single-use medical devices in China.Weigao is organized into six operating divisions: (i) medical device products (infusion set, syringes, medical needles, pre-filling syringes), (ii) orthopedic products, (iii) interventional products; (iv) pharma packaging products; (v) blood management products; and (vi) others. Weigao’s manufacturing operations are situated mainly in Weihai, Shandong Province. Weigao also has a number of other subsidiaries in the group, viz.: Weigao Medical Device; Weigao Orthopedic and Argon Medical (in United States).The proposed financing package will consist of: (i) an A loan of up to US$250 million; and (ii) debt mobilization of up to US$100 million equivalent from other development finance institution (“DFI”) in the form of a straight senior loan, as well as potential core mobilization from other financial institutions. The proposed financing is to support Weigao: (i) to upgrade its manufacturing facilities in China, including up to US$150 million of green capital expenditure for improving resource efficiency in production; (ii) to support its Southeast Asia expansion; and (iii) for research and development (R&D) of new products to further diversify its product portfolio (the “Project”).IFC supported previous projects with the Company as follows: “Weigao GreenBond” in 2019 (https://disclosures.ifc.org/project-detail/ESRS/43238/weigao-greenbond) “Weigao II” in 2014 (https://disclosures.ifc.org/project-detail/ESRS/34313/weigao-ii ); and “Weigao” in 2006 (https://disclosures.ifc.org/project-detail/ESRS/25099/weigao). Ongoing supervision of the existing investments indicates the Company’s environmental and social performance is generally satisfactory.