Integrated Diagnostics Holdings secures $45 million debt financing package from IFC
Integrated Diagnostics Holdings (IDH), a healthcare diagnostics service provider with operations in Egypt, Jordan, Sudan, and Nigeria announced on Tuesday it secured a $45 debt financing package from the International Finance Corporation (IFC).
The eight-year loan will go for financing IDH’s growth plans across new and existing markets and help expand access to high-quality diagnostic services in high growth emerging markets, in addition to its current presence in Egypt, Jordan, Nigeria and Sudan.
The company is seeking value-accretive acquisition opportunities in African, Middle Eastern, and South Asian markets where its business model is well-suited to capitalise on healthcare and consumer trends similar to those prevailing in its existing markets, it said in a statement.
The loan will also be used for expanding IDH’s medical services and test portfolio, with a particular focus on testing for COVID-19 in Egypt and Jordan as both countries continue to battle the pandemic, while growing IDH’s branch network to improve accessibility and reach.
The IFC’s new debt financing agreement “allows IDH to deliver on its strategic objective of expanding access to high quality, affordable healthcare and diagnostic services in new and existing markets.” IDH’ chief executive Hend El Sherbini said in the statement.
This is while also “delivering on the IFC’s goal of promoting economically, socially, and environmentally sustainable private investment.”
“This new agreement further strengthens our existing long-term strategic cooperation that began with our co-investment in Nigeria, where we have jointly deployed millions of dollars to bring best-in-class medical diagnostic practices and technology to Africa’s most populous country.”
“Through this new debt financing agreement, we are once again reinforcing our commitment to the healthcare sector across emerging markets, delivering on our shared strategy and aligned ESG goals to provide communities with the tools they need to better their lives.” El Sherbini said.
The financing package will allow IDH to expand healthcare accessibility by growing its regional footprint through potential acquisitions, as well as expanding its current medical service offering, geographical reach, and digital offering to ensure that it provides access to as many patients as possible, she added.
“In parallel, we continue to invest in further diversifying our test portfolio and in training our employees so that we can deliver the best quality test packages to our clients.
“We take pride in our partnership with a prestigious institution like the IFC and look forward to leveraging its financing muscle along with our on-the-ground capabilities to meet the strong demand for healthcare services in our region,” El-Sherbini concluded.
With support from IFC, IDH is also aiming to become the first healthcare provider in the Middle East and Africa to obtain IFC’s EDGE Gender Equality Certification by creating optimal workplaces for women and men, the company added.
IDH is already a founding signatory to IFC’s Ethical Principles in Healthcare, which promote ethical practices across the international private healthcare delivery system.
IFC’s loan is part of its strategy to help private health providers in the Middle East, Africa, and South Asia meet the soaring demand for health care and support governments in their goal of reaching Universal Health Coverage.
Renaissance Capital is advising IDH in connection to the financing. Clifford Chance (as to English and US law), and Nour & Partners in Association with Al Tamimi & Company (as to Egyptian law) are acting as legal counsels to the company.