The International Finance Corporation, a member of the World Bank Group, is providing a $45 million loan to Integrated Diagnostics Holdings (IDH) to help the company expand its operations in Egypt and other markets.
Integrated Diagnostics, which is listed on the London Stock Exchange and Egyptian Exchange, provides diagnostic services in Egypt, Sudan, Jordan and Nigeria.
The loan “will support IDH's expansion in Egypt and other emerging markets where diagnostic services, the cornerstone of an effective healthcare system are often lacking”, the IFC said.
IDH, which offers Covid-19 tests in Jordan and Egypt, is expanding by adding more testing centres and the scope of diagnostic tests offered.
Demand for diagnostic services has grown amid the coronavirus pandemic and companies are aiming to tap into this demand by increasing their investments in medical services such as laboratories and other support services.
The debt financing package will allow IDH to grow its regional footprint through potential acquisitions and by expanding its current medical service offerings, Hend El Sherbini, chief executive of IDH, said.
Washington-based IFC is the largest global development institution focused on supporting the private sector in emerging markets. In the fiscal year 2020, it invested $22 billion in 282 projects, according to a statement on its website.
"This investment will mean better healthcare outcomes for patients in Egypt and in other countries in the Middle East and Africa,” Sérgio Pimenta, IFC vice president for the Middle East and Africa, said.
IDH reported a total revenue of 2.6bn Egyptian pounds ($165m) last year, up 19 per cent compared to the previous year, while net profit rose 21 per cent to 609m pounds.
“IFC's financing package is part of its strategy to help private health providers in the Middle East and Africa meet the soaring demand for healthcare and support the Egyptian government in its goal of achieving universal health coverage by 2030,” the organisation said.
The IFC also has other investments in Egypt, including in Algebra Ventures, one of the largest venture capital funds in the country.