ADB provides $18.4m debt financing to India’s Cygnus Medicare

This will support increasing access to affordable and quality healthcare.

The Asian Development Bank (ADB) and Cygnus Medicare Private Limited signed a deal for $18.4m in deb financing through the subscription of nonconvertible debentures, supporting the healthcare company’s plan to build up to six new hospitals in tier-2 and tier-3 cities, particularly in northern India

In a statement, the ADB said the debt financing will also support Cygnus’ goal to ramp up its bed capacity from 1,622 to 2,560 by 2026, in line with the government’s national social health insurance programme.

“India faces a significant geographic inequity in the distribution of quality health care, with most private hospitals concentrated in tier-1 cities. This makes it challenging for people in tier-2 and tier-3 cities to access quality preventive and curative health services and poses long-term risks to public health,” said ADB Director General for Private Sector Operations Suzanne Gaboury. 

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“Cygnus’ mission to provide health care services where they are needed most aligns with ADB’s focus on improving health care infrastructure, particularly in underserved states, and supporting health care providers that work with government social health insurance programs,” she added.

The fund will also enable Cygnus to install rooftop solar power generation systems at the hospitals, generating 1,213 megawatt-hours of energy and cutting carbon dioxide emissions by around 1,231 tonnes annually by 2028.