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ADB Signs INR 150 Cr Debt Financing Deal with Cygnus Medicare to Help Expand in North India

Written by : Jayati Dubey

January 19, 2024

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The financing agreement supports Cygnus' ambitious plans to establish up to six new hospitals in Tier-II and Tier-III cities.

The Asian Development Bank (ADB) has recently signed an agreement to provide INR 150 Cr (approximately $18.4 million) in debt financing for Cygnus Medicare. The funding aims to advance affordable and high-quality healthcare in northern India, focusing on expanding access in Tier-II and Tier-III cities.

Established in 2011, Cygnus currently operates a network of 20 multispecialty hospitals across 18 cities in India. 15 of Cygnus' hospitals are accredited by the National Accreditation Board for Hospitals & Healthcare Providers.

Sharing thoughts, Suzanne Gaboury, director general of Private Sector Operations, ABD, said, "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-II and Tier-III cities to access quality preventive and curative health services and poses long-term risks to public health."

She noted that Cygnus' mission to provide healthcare services where they are needed most aligns with ADB's focus on improving healthcare infrastructure, particularly in underserved states in India, and supporting healthcare providers that work with government social health insurance programs,

Cygnus’ range of services includes general medicine, cardiology, surgery, neurology, gastroenterology, nephrology, orthopaedics, gynaecology, emergency and trauma care, and oncology.

Cygnus' Expansion Plans

The financing agreement supports Cygnus' ambitious plans to establish up to six new hospitals in Tier-II and Tier-III cities. Additionally, Cygnus intends to strengthen and upgrade its existing hospitals by adding speciality departments and increasing bed capacity.

The expansion strategy aims to boost the total bed capacity from 1,622 to 2,560 by 2026. This significant development aligns with the Indian government's national social health insurance program, the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY).

Cygnus has been actively supporting the AB-PMJAY since its launch in 2018. The government initiative aims to reduce out-of-pocket costs, enhance social protection for vulnerable households, and leverage the private healthcare sector.

ADB's involvement will contribute to Cygnus' efforts to expand gender impact, focusing on increasing women outpatient visits and supervised childbirths.

ADB-Cygnus Solar Power Initiative

In addition to healthcare expansion, the financing will enable Cygnus to install rooftop solar power generation systems at its hospitals. The solar systems are expected to generate up to 1,213 MWh of clean, renewable energy annually by 2028.

This initiative aligns with environmental sustainability goals, contributing to a reduction of around 1,231 tons of carbon dioxide emissions each year and simultaneously lowering hospital operational costs.

Talking about this initiative, Probal Ghosal, chairman & MD, Cygnus, said, "We are committed to providing high-quality, sustainable, and inclusive health care to the communities in Tier-II and Tier-III cities. Our vision is aligned with the Government of India's healthcare mission, having pioneered the implementation of AB-PMJAY in its true spirit. By partnering with ADB, we will be able to further strengthen our network of hospitals and build upon our focus on environmental, social, and governance practices in our growth plans."

The ADB's investment signifies a crucial step towards bridging healthcare gaps, promoting sustainability, and ensuring broader access to quality medical services in regions with pressing healthcare needs.

As Cygnus expands its operations with this substantial financial backing, it is poised to address healthcare disparities and contribute to the overall well-being of communities in northern India.

In another development, ADB approved a $500 million loan aimed at enhancing the quality and affordability of tertiary healthcare and medical education in Maharashtra, India.

The Maharashtra Tertiary Care and Medical Education Sector Development Programme, financed by the ADB loan, is set to usher in pivotal policy reforms to fortify tertiary healthcare services and expand medical education, especially in underserved regions.


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