IFC extends $40 million loan for healthcare

MANILA, Philippines — The Philippine units of Singapore-based healthcare firm Fullerton Health have secured a $40 million long-term loan facility from the International Finance Corp. (IFC)—the private sector arm of the World Bank Group.

IFC said the loan facility was extended to Fullerton’s wholly owned units Fullerton Health Philippines Holdings Corp. and Fullerton Health Philippines Pte. Ltd. 

“The IFC investment will help improve the provision of affordable, quality healthcare in the Philippines and enhance efficiencies in the health maintenance organization (HMO) market through increased integration between the financing and provision of healthcare,” IFC said in a statement. 

This follows Fullerton Health’s entry into the Philippine market through the acquisition of a 60 percent stake in the Intellicare Group which comprises three companies: Asalus Corp., an HMO engaged in the delivery of managed healthcare services via comprehensive, systematic and prevention-oriented health maintenance programs; Avega Managed Care Inc., a provider of third party administration services to corporate clients; and Aventus Medical Care Inc., a professionally managed clinic network of out-patient and mobile clinics.

The Intellicare Group is strategically aligned with Fullerton Health’s vision of being Asia Pacific’s pre-eminent total healthcare solution provider. The acquisition reinforces Fullerton Health’s strategy of developing its presence in markets across the Asia Pacific region. 

IFC said the loan “will support the expansion of one of the leading HMOs in the country, significantly increasing its outreach.” The expanding network will also help Intellicare provide more training opportunities for health professionals in the Philippines, improving the skill level in this sector, and subsequently create jobs. 

IFC’s support will also include sharing of best practices within different areas of operations, including facilitating introductions within IFC’s network of health care clients. 

 “Garnering the support of IFC as a long-term financing partner is a strong testament of what we have achieved thus far in the healthcare sector across Asia Pacific, and validates our strategic partnership with the Intellicare Group to deliver a holistic approach to managed healthcare in the Philippines,” said Tam Chee Chong, Fullerton Health’s chief financial officer. 

Vivek Pathak, IFC director for East Asia and the Pacific, said the investment aligns with IFC’s development mandate in developing countries like the Philippines. 

 “High quality affordable healthcare is critical to the long-term sustainable development of the Philippines. This project aligns with IFC’s development mandate and will help benefit the Philippines, a country with a wide gap in health insurance coverage,”he said. “Growth of Intellicare and other companies in this segment will help reduce low and middle-income households’ reliance on out-of-pocket payments to fund healthcare expenses.”

IFC said it has invested more than $3 billion to support more than 100 private sector companies in the Philippines since 1962.