SHANGHAI, PEOPLE’S REPUBLIC OF CHINA (8 July 2019) — The Asian Development Bank (ADB) signed a loan agreement of $150 million with Far East Horizon Limited (FEH) to provide lease financing to public hospitals in 12 of the least developed provinces in the People’s Republic of China (PRC), improving health service delivery to people in rural parts of the country.
The loan deal was signed by Director of ADB’s Private Sector Financial Institutions Division Ms. Christine Engstrom and FEH Executive Director Mr. Wang Mingzhi at a ceremony in Shanghai. It is part of a $350 million financing package from ADB, which also includes a B loan of up to $200 million to be funded by commercial cofinanciers.
“Health care service has grown in the PRC over the last two decades, but there is still a need to make health care services affordable, reliable, and accessible particularly in the rural and other less developed areas,” said Ms. Engstrom. “ADB’s deal with FEH will help public hospitals to access much-needed finance, through a leasing arrangement, to invest in new equipment and deliver higher-quality medical services that will make a real difference to people’s lives.”
“There is still a significant gap in terms of equipment deployment and medical capacity between hospitals, especially county-level hospitals, located in central and western regions and those located in key cities.” said Mr. Wang, “That’s the reason that FEH has dedicated to promote the development in this area over the years.”
FEH will use the proceeds of ADB’s loan to finance the lease or purchase of modern medical equipment. Eligible hospitals will be from the 12 least developed provinces in terms of per capita income, which are located in the central and western regions of the PRC. Specifically, the ADB loan proceeds will be used exclusively for county hospitals, which primarily serve the population in surrounding rural areas.
FEH started operations in 1991 and is one of the PRC’s leading financial services groups, providing financial leasing and extended value services. The company has more than 20 years of health care leasing experience with a development focus. Apart from health care, FEH also operates in education, infrastructure construction, industrial machinery, transport and logistics, livelihood and consumption, and urban public utilities.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to $21.6 billion. Established in 1966, it is owned by 68 members—49 from the region.