The International Finance Corporation (IFC) has become a strategic investor in the social bonds issued by Georgia Healthcare Group (GHG). This marks the first time such an instrument has been used in the healthcare sector across the Caucasus region.
IFC’s investment amounts to 40 million GEL and is part of a larger 350 million GEL issuance (equivalent to approximately $130 million USD). Notably, this is the largest corporate bond issuance in Georgia denominated in the national currency.
The main objective of this investment is to increase access to healthcare services, particularly high-quality oncology and outpatient services, especially for rural populations. Cancer is one of the leading causes of death in Georgia, and addressing this problem requires early diagnosis and preventative outpatient treatment. The funds raised from the social bonds will be used specifically for this purpose, which is expected to improve patient outcomes and, in the long term, increase the efficiency of the healthcare system.
The 5-year, GEL-denominated bond is a significant step forward for the development of the local capital market. This placement mobilized private investments and allowed investors to not only receive a financial return but also have a positive social impact.
Georgia Healthcare Group is the country’s largest provider of healthcare services, operating around 50 hospitals, clinics, and laboratories. IFC’s investment is part of the World Bank Group’s broader mission to improve Georgia’s healthcare system and develop its capital markets. Since 1995, IFC has invested approximately $2.7 billion in Georgia’s economy.
