IFC to invest $68m in India's Apollo Health

IFC's investment will be split between its own account and that of IFC Asset Management - which comprises third-party capital managed IFC - with both committing about $34 million. AHL will use the capital to support its southern and eastern India expansion project, which it estimates will cost about $135 million in total.

The project will see AHL open 151 small-format healthcare centers, including primary care, dental care, dialysis and short stay surgery centers, according to a disclosure. It will also open nine maternity facilities and 64 pathology labs, and 765 collection centers to support the new clinics.

AHL is a unit of listed company Apollo Hospitals, India's largest hospital chain. Apollo has received significant private equity backing, notably from Apax Partners, which invested $170 million over several tranches starting in 2007 to eventually reach a 19% stake in the company. Apax exited its stake over several years, eventually realizing a 2.5x capital return and 20% IRR by the time of its final exit in 2013.

Separately, IFC has committed $20 million to Future Consumer Enterprise (FCEL), part of Indian retail giant Future Group. The capital will be used to fuel FCEL's growth plans and strengthen its balance sheet; FCEL also plans to improve its environmental, health and safety practices with IFC's help.

In December FCEL secured a $45 million investment from Black River Asset Management, an alternative investment unit of agribusiness giant Cargill; Black River has since spun out as Proterra Investments Partners. In a release, FCEL said that IFC's commitment, combined with the Proterra investment and a $10 million commitment from promoters, will close the company's current funding round at $75 million.

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• Topics
• South Asia
• Healthcare
• Consumer
• Expansion
• PIPEs
• India
• IFC