This investment was made when British International Investment was named CDC Group.
We have now exited this investment. This is what we achieved.
Achieved impact
STS runs two hospitals, one in Dhaka and the other in Chittagong. When we invested, our aim was to support the development of the new hospital in Chittagong. This goal has been achieved, and the hospital is now operational, although due to delays from COVID-19, it is not yet operating at full capacity.
Since our investment in 2019, the company has served approximately 60,000 in-patients (with a total around 400 hospital beds across Dhaka and Chittagong), and 1.3 million out-patients. However, footfall numbers are less than our initial expectations at the point of investment by 30 per cent and 22 per cent respectively. This is primarily due to the delay in the completion of the Chittagong facility due to COVID-19.
In terms of job creation, the company employees 5, 100 people (in 'full-time equivalents'), the majority in Dhaka (82 per cent). STS previously ran a nursing college to upskill healthcare service providers, but this was hampered due to a change in government regulation.
Expected impact
Evercare and CDC Group have acquired a controlling interest in STS Holdings Ltd (STS). STS joins the Evercare network of hospitals that operate across South Asia and Africa and will provide immediate additional scale to the Evercare platform, significantly increasing the number of patients served.
Impact information
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
What?
| Impact |
|---|
Support provision of healthcare (SDG 3). |
|
|
How?
| How? |
|---|
|
CDC's investment will support completion of a new hospital and enable growth of the business. CDC's investment will support STS to create new jobs and grow the nursing college. |
Who?
| Stakeholder | Geography | Characteristics |
|---|---|---|
| Patients |
Bangladesh |
|
| Employees |
Bangladesh |
85 per cent are local talent and majority of workforce are women. |
How much?
| Scale | Depth/Duration |
|---|---|
|
Patients: Supporting an increase of c.380,000 patients annually by 2025. |
The healthcare provided will help lower mortality rates of those treated, this is particularly important in Bangladesh where there is currently limited provision of quality tertiary care. Jobs offer an emphasis on deepening training opportunities. |
Contribution/additionality
| Contribution/additionality |
|---|
|
Grid score
| Grid Score
To help us direct our investments, we previously used a tool called the Development Impact Grid. It scored investments out of four, based on two factors: the difficulty of investing in a country and the propensity of the sector to generate employment. This tool was used for investments until the end of 2021. Since 2022 it has been replaced by the Impact Score. |
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3 |
Risk
Execution Risk
|
Reporting and Complaints Mechanism
The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to reportsandcomplaints@bii.co.uk or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at enquiries@bii.co.uk
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Key facts
- Last updated
:
When the last quarterly update of the website database occurred.
- December 2024
- Project number
:
An identifier number shared by investments in the same project.
- D3909
- Status
:
The current status of the investment (green flag for active and red flag for exited).
- Exited
- Region
:
The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
- South Asia
- Country
:
The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.
- Bangladesh
- Sector
:
We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.
- Health
- Sub sector
:
The sub-sector that the investment is made into; this provides a more granular level of detail than the ‘sector’ information
- Health Care Providers & Services
- Investment type :
- Equity
- Start date :
- December 2019
- End date :
- February 2024
- Amount :
- $45.18m
- Currency of investment :
- USD
- Domicile
:
The company or investment fund’s place of incorporation.
- Bangladesh
We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.
For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.
For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.
For direct equity investments, this is the date at which British International Investment exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.
For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.
The currency in which the investment was made.
- Last updated
