IFC & Santander Brasil To Expand Access To Finance For Smaller Healthcare Providers

Smaller healthcare providers, doctors and health professionals will have improved access to finance with an IFC investment aiming to strengthen Brazil’s health system by supporting greater market resilience and addressing the continuing challenges of Covid-19.

IFC’s financing package of US$150 million to Banco Santander, a bank in Brazil, will allow the bank to expand its financing to doctors and healthcare micro, small and medium enterprises (MSMEs) for working capital and purchase of medical equipment. This is IFC’s first Social Loan in healthcare in the Latin America and Caribbean region and the project is under its Global Health Platform (GHP). GHP is a US$4 billion IFC program with the objective of mobilising private investment to close the healthcare supply gaps caused by Covid-19.

MSMEs are the backbone of the Brazilian public health system, catering especially to low-income and lower middle-income patients. With a much lower availability of medical technology than the other health services in Brazil, supporting healthcare MSMEs is key to equipping the Brazilian health system for future resilience.

The package will be managed by Santander Financiamentos, the finance company of Santander Brasil, which already has expertise in credit solutions for hospitals, healthcare operators, healthcare centers, medical equipment industry, pharmaceuticals and diagnostic centers.

"IFC’s timely contribution will enable us to increase access to financing for healthcare MSMEs and professionals, stimulating the development of services by increasing the availability of medical equipment. This will help modernise and widen the coverage of healthcare services across the country at a time of pressure on the healthcare system,” says André Novaes, director of Santander Financiamentos.

“One of IFC’s strategic priorities in Brazil is to support access to quality and affordable healthcare. Given the global pandemic, the role of the private sector will be key to bridging the gap in services and supporting healthcare MSMEs scale up services,” says Carlos Leiria Pinto, IFC’s Country Manager in Brazil. “We are optimistic that IFC’s loan will have a catalytic effect, encouraging more social loan issuances while expanding access to medical technology and deepening the local healthcare ecosystem,” he adds.