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Chindex
International Announces Financing Program
With
the International Finance Corporation of the World Bank Group
10
Year Program To Fund Continued Hospital Network Growth |
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Beijing,
China, October 12, 2005 - Chindex International, Inc. (NASDAQ:CHDX)
announced today the finalization of a long-term financing program
with the International Finance Corporation, the private sector arm
of the World Bank Group. The IFC has provided an RMB 64.88 million
loan to support Chindex International's United Family Hospitals and
Clinics (UFH), a leading Chinese hospital group with facilities in
Beijing and Shanghai .
The
IFC funds will be used for medical equipment and facilities upgrades
at the UFH network's newly opened Shanghai hospital, its flagship
hospital in Beijing , an outpatient clinic in downtown Beijing and
to launch a medical training program to teach the latest in international
standard patient care to nurses from both the public and private sector.
The funds will also partially be used for retiring other debt currently
held by the facilities resulting in a more traditional balance sheet
structure for a developing hospital group.
The
UFH network was established in 1997 to bring an unprecedented level
of private healthcare services to mainland China
. The group has introduced an international-standard
model of patient-centered healthcare management and service. Its
two general hospitals, similar to a Western "community" or "family"
hospital, offer a wide range of medical and surgical inpatient services,
outpatient consultations, ER and primary care in a beautiful and comforting
environment. They are organized as separate legal entities. Each
is a foreign-Sino joint venture majority owned directly by Chindex
International, Inc.
Roberta
Lipson, CEO of Chindex International, Inc. and Chairman of the Board
of Directors of United Family Hospitals, said, "We are honored
to partner with IFC in long term development programs for our hospital
network. We believe that our United Family Hospital model provides
leading edge patient services and the finest hospital management services
available in China today. Our educational programs in nursing and
other areas of care delivery have been recognized for their excellence.
With IFC's help to provide financing for our continuing expansion
of services and facilities we see continued growth of the hospital
network."
"IFC's
support of this hospital group is part of our ongoing effort to help
private companies expand the access to international standards
of high level, patient-centered health
care services in China ," said IFC Director
of Health and Education, Guy Ellena. "We expect United Family
Hospitals to continue programs that have established new benchmarks
of medical excellence and outstanding quality of patient care in China
."
Bart Daniel, Vice President for Finance and CFO of United Family
Hospitals also noted, "The IFC financing gives us the opportunity
to continue investment in expansion of our services in both the Beijing
and Shanghai markets. We will also take advantage of the long-term
nature of the program to restructure our existing debt."
"IFC's
investment in United Family Hospitals shows our commitment to social
sector development in China ,"
said IFC's Director for East Asia
and the Pacific, Javed Hamid. "By
providing long-term, local currency financing we are helping to develop
a market for the financing of health care facilities, which tend to
be long term, capital-intensive efforts with revenues in the local
currency."
Since 1985, IFC has invested more than $2 billion in 100 private sector
companies in China. The International Finance Corporation, the private
sector arm of the World Bank Group, promotes sustainable private sector
investment in developing and transition countries, helping to reduce
poverty and improve people's lives. IFC finances private sector investments,
mobilizes capital in the international financial markets, helps clients
improve social and environmental sustainability, and provides technical
assistance and advice to governments and businesses. Its 178 member
countries provide its share capital and collectively determine its
policies. From its founding in 1956 through FY05, IFC has committed
more than $49 billion of its own funds and arranged $24 billion in
syndications for 3,319 companies in 140 developing countries. IFC's
worldwide committed portfolio as of FY05 was $19.3 billion for its
own account and $5.3 billion held for participants in loan syndications.
For more information, visit www.ifc.org
.
Chindex
International Inc. is an American company operating in several healthcare
sectors of the Chinese marketplace, including Hong Kong. It provides
healthcare services through the operations of its United Family Hospital
network of private hospitals operating in the Beijing and Shanghai.
It also provides representative and distribution services to a number
of major multinational companies including Siemens AG (ultrasound
systems) and Guidant (interventional cardiology products including
stents, balloon catheters and guide wires). Its distribution channels
to the retail pharmacy industry in China have been developed through
a relationship with a major multinational cosmetics manufacturer.
With twenty-four years of experience, over 1,000 employees, and operations
in the United States, China and Hong Kong, the Company's strategy
is to expand its cross-cultural reach by providing leading edge technologies,
quality products and services to Greater China's professional communities.
Further company information may be found at the Company's websites,
www.chindex.com and
www.unitedfamilyhospitals.com
.
Some
of the information in this release may contain statements regarding
future expectations, plans, prospects for performance of the Company
that constitute forward-looking statements for purposes of the safe
harbor provisions of The Private Securities Litigation Reform Act
of 1995. The Company cannot guarantee future results, levels of activity,
performance or achievements. The numbers discussed in this release
also involve risks and uncertainties. The following factors, among
others, could cause actual results to differ materially from those
described by such statements: our ability to manage our growth and
maintain adequate controls, our ability to obtain additional financing,
the loss of services of key personnel, general market conditions including
inflation or foreign currency fluctuations, our dependence on relationships
with suppliers, the timing of our revenues and fluctuations in financial
performance, the availability to our customers of third-party financings,
product liability claims and product recalls, competition, hiring
and retaining qualified sales and service personnel, management of
inventory, relations with foreign trade corporations, dependence on
sub-distributors and dealers, completion and opening of healthcare
facilities, attracting and retaining qualified physicians and other
hospital personnel, regulatory compliance, the cost of malpractice,
our dependence on our information systems, the economic policies of
the Chinese government, the newness and undeveloped nature of the
Chinese legal system, the regulation of the conversion of Chinese
currency, future epidemics in China such as SARS, the control over
our operation by insiders, continuity of relationships and variability
of financial margins with existing suppliers, our liquidity and availability
of capital resources to meet cash requirements, including capital
expenditures and those other factors contained in the section titled
"Risk Factors" as set forth on page 6 of the Company's Registration
Statement on Form S-3 (File No. 333-123975) declared effective by
the Securities and Exchange Commission on April 20, 2005, as well
as other documents that may be filed by the Company from time to time
with the Securities and Exchange Commission. The forward-looking statements
and numbers contained herein represent the judgment of the Company,
as of the date of this press release, and the Company disclaims any
intent or obligation to update such forward-looking statements to
reflect any change in the Company's expectations with regard thereto
or any change in events, conditions, circumstances on which such statements
are based.
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