Multicountry: Quadria Capital Fund III

OBJECTIVE

To foster quality health infrastructure in South and Southeast Asia.

DESCRIPTION

Quadria Capital Fund III (the Fund) is a closed-end private equity fund focused on investing in healthcare infrastructure in South and Southeast Asia. Building on the strong healthcare and investment expertise of the Fund Manager, Quadria Capital, the Fund seeks to invest in businesses that provide high quality healthcare delivery, life sciences (pharmaceutical), medical technology, and associated healthcare services. By investing in these enabling healthcare infrastructures and services, the Fund aims to drive sustainable social impacts across key pillars in access, affordability, quality, and awareness of healthcare products and services.

ENVIRONMENTAL AND SOCIAL INFORMATION

AIIB's Environmental and Social Policy (ESP) is applicable to the Project, which has been assigned Category FI since it involves the provision of funds to the Fund. The Fund has adopted an Environmental, Social and Governance Framework (ESGF) that is in congruence with AIIB’s Environmental and Social Framework (ESF), Environmental and Social Standards (ESS) and the Environmental and Social Exclusion List (ESEL). After conducting prior review of the initial investments, the Bank will delegate to the Fund the selection, appraisal, approval and monitoring of the Fund’s further investments in subprojects in line with the ESGF. The Fund’s approximate pipeline has been mutually agreed and is aligned with the Bank’s sector strategies and geographies. Coal mining, coal transportation or coal-fired power plants as well as infrastructure exclusively dedicated to support any of these activities will be excluded.

The Fund will invest in healthcare companies in four sectors: healthcare delivery, life sciences, medical technology, and associated healthcare services in South Asia and Southeast East Asia. It is expected that such companies will involve the development of soft assets such as software and platforms, and hard assets such as specialty hospitals and medical facilities. In addition, there may be specific operational issues such as ensuring the proper handling and disposal of medical waste and preventing the exposure of workers and community members to infectious diseases. These proposed investment sectors range in their potential environmental and social (E&S) risks and impacts, and they will be mitigated using the Fund Manager’s ESGF complemented by monitoring and supervision by AIIB.

For all investments supported by AIIB, the Fund will require portfolio company-level ESGS in alignment with AIIB’s ESP and, where applicable, the ESS, including appropriate processes for timely disclosure of environmental and social (E&S) information, conduct of stakeholder engagement activities, and establishment of subproject-level Grievance Redress Mechanisms (GRMs) to address concerns and grievances from both project workers and project-affected people. The Fund Manager will monitor these aspects as part of its portfolio monitoring process.

AIIB will conduct prior review of investments presenting significant E&S risks, including all Category A investments and Category B investments determined to potentially induce a) involuntary resettlement, b) risk of adverse impacts on Indigenous Peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural resources or d) significant Occupational Health and Safety risks, and will receive an annual E&S monitoring report on the E&S performance of all AIIB-supported investments. During implementation, AIIB will do prior review of all subprojects with a particular focus on all Category A and higher-risk Category B subprojects, whereby the Fund will be required to furnish detailed environmental and social due diligence assessment and instruments for the Bank’s prior review and approval. AIIB will conduct regular monitoring of the Fund’s activities, including visits to selected investments.

The Fund Manager has published on its website an overview of its ESGF, and the name, location, and sectors of its portfolio projects. The Fund has an External Communication Mechanism (ECM) and provides information on how stakeholders can raise enquiries or concerns.