Chindex International has signed a loan agreement with Deutsche Investitions und Entwicklungsgesellschaft mbH of Germany, a development finance institution and member of the KfW banking group, to continue expansion of the company's United Family Hospitals and Clinics network of private hospitals and clinics in China.
The loan agreement provides for US$20 million in debt financing. The loan agreement with DEG will be made directly to joint venture entities, to be established in China and controlled by the company, to undertake the construction, equipping and operation of two new hospitals and a related clinic in China. The obligations of the borrowers will be guaranteed by the company, secured by a pledge by the company of its equity interests in the borrowers and secured pursuant to mortgage agreements by the borrowers.
The loan agreement complements the recent US$50 million investment in the company by J.P. Morgan's principal management investment group and a US$35 million financing package with the International Finance Corporation, a member of the World Bank Group, to finance the same health care expansion program.
Roberta Lipson, founder and CEO of the company said, "We are excited to expand our role of introducing new models of health delivery to the quickly evolving Chinese market. With this financing we will be able to grow our health care network to meet the growing demand for our services and are delighted to welcome the partnership of DEG with our development plans for the United Family Healthcare network."
