Beijing, August 29, 2012—
IFC, a member of the World Bank Group, has agreed to provide 300 million
Chinese yuan ($47 million) to Fosun Pharma to expand its business and help
increase the availability of quality and affordable drugs in China and
other developing countries.
Fosun Pharma is one of China’s leading
drug companies, manufacturing both generic and innovative medicines. It
is also one of the largest suppliers of anti-malaria drugs to developing
countries through international institutions like the World Health Organization
and the International Red Cross. To date, it has provided anti-malaria
drugs to more than 300 million people in Africa and Southeast Asia.
The loan is IFC’s second to Fosun Pharma.
In 2006, IFC provided 320 million yuan through the issuance of a local-currency
bond or “panda bond.” That financing helped the company expand its manufacturing
and distribution businesses.
“IFC’s financing has supported Fosun
Pharma’s growth in the last few years,” said Chen Qiyu, Chairman of Fosun
Pharma. “Now we are aiming to increase our presence globally to become
a competitive Chinese player worldwide. IFC’s global industry knowledge
and long-term financing and will enable us to operate and expand our pharmaceutical
business in a challenging market environment.”
IFC’s loan will provide long-term funding
to the company’s subsidiaries in China to help upgrade manufacturing facilities,
including those located in less-developed regions, and further enhance
“We are keen to provide financing to
key Chinese private sector clients that create thousands of jobs as they
grow and cater to the needs of underserved populations,” said IFC’s Director
for East Asia and the Pacific Sérgio Pimenta. “By supporting companies
like Fosun Pharma, we are helping to ensure that the benefits of economic
growth reach the poor.”
So far, Fosun Pharma’s subsidiary,
Guilin Pharma, has obtained the prequalification certification of the World
Health Organization for its five anti-malaria drugs that enhance its position
as a globally leading company in the anti-malaria fight.
The new loan will be funded through
IFC’s landmark Renminbi Swap Facility with Chinese banks. The facility
allows IFC to provide loans in local currency to meet specific financing
needs of its private sector clients and help them avoid foreign-exchange
risks. IFC is the first multilateral institution authorized to conduct
transactions with Chinese banks in the domestic currency swap market.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, mobilizing capital in international financial
markets, and providing advisory services to businesses and governments.
In FY12, our investments reached an all-time high of more than $20 billion,
leveraging the power of the private sector to create jobs, spark innovation,
and tackle the world’s most pressing development challenges. For more
information, visit www.ifc.org.