NEW DELHI, India – The Asian Development Bank (ADB) has signed an agreement for 1.5 billion Indian rupees (or the equivalent of $18.4 million) in debt financing through the subscription of nonconvertible debentures for Cygnus Medicare Private Limited to expand access to affordable and quality health care in northern India.
The financing will support Cygnus’ plans to establish up to six new hospitals in tier-2 and tier-3 cities and strengthen and upgrade its existing hospitals by adding specialty departments and adding new beds. The expansion will increase its bed capacity from 1,622 to 2,560 by 2026. The additional hospitals will support the Government of India’s national social health insurance program, the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY).
“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.
“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 in India, and supporting health care providers that work with government social health insurance programs.”
Cygnus has supported the AB-PMJAY since the government launched it in 2018. The program aims to reduce out-of-pocket costs and increase social protection for poor and vulnerable households while leveraging the private health care sector. ADB will also help Cygnus expand its gender impact by increasing the number of women outpatient visits as well as the number of supervised childbirths.
The financing will also facilitate Cygnus to install rooftop solar power generation systems at Cygnus hospitals which are expected to generate up to 1,213 megawatt-hours of clean, renewable energy and reduce around 1,231 tons of carbon dioxide emissions annually by 2028, while also reducing hospital operational costs.
“We are committed to providing high-quality, sustainable, and inclusive health care to the communities in tier-2 and tier-3 cities. Our vision is aligned with the government of India’s health care mission, having pioneered the implementation of AB-PMJAY in its true spirit,” said Cygnus chairman and managing director Probal Ghosal.
“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.”
Cygnus was established in 2011 and currently operates a network of 20 multispecialty hospitals across 18 cities in India. The company provides affordable and quality health care to patients in tier-2 and tier-3 cities. Fifteen of its hospitals are accredited with the National Accreditation Board for Hospitals & Healthcare Providers. Its hospitals’ services include general medicine, cardiology, surgery, neurology, gastroenterology, nephrology, orthopedics, gynecology, emergency and trauma care, and oncology.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members – 49 from the region.
