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China: Legend Capital Healthcare Technology Fund

SUMMARY

STATUS
Approved
MEMBER
China
SECTOR
ICT
E&S CATEGORY
FI
PROJECT NUMBER
000364

FINANCING

APPROVED FUNDING
USD30 million
FINANCING TYPE
Nonsovereign

TIMELINE

CONCEPT REVIEW
August 26, 2020
FINANCING APPROVAL
October 15,2020

OBJECTIVE

Finance and support the growth and venture capital fund which invests in healthcare technology and digital hospital companies with a focus in China. The project aims to foster more mature applications of technology and digitalization to improve capacity, efficacy, inclusiveness and resilience of the Chinese healthcare infrastructure and service delivery.

DESCRIPTION

To address the changing healthcare demands and more complex healthcare challenges, AIIB is seeking to partner with a leading healthcare technology fund manager to facilitate technology applications and digitalization of the healthcare industry in China. AIIB as a Limited Partner investor will invest in LC Healthcare Fund II (the “Fund”), which will be managed by a leading venture capital fund management firm, Legend Capital Co., Ltd (“Legend Capital”). The Fund targets to invest in early stage and growth stage healthcare companies, covering the following primary sub-sectors: medical technology, digital health and professional services and biotechnology.

ENVIRONMENTAL AND SOCIAL INFORMATION

AIIB's Environmental and Social Policy (ESP), including the Environmental and Social Exclusion List (ESEL) and if applicable, the Environmental and Social Standards (ESSs), is applicable to the Project. The Project has been placed in Category FI because it involves the provision of funds to a financial intermediary, the Fund. AIIB will delegate the decision-making on the use of AIIB funds to the Fund manager, Legend Capital, for investments in portfolio companies that meet the conditions in the Fund’s enhanced Environmental and Social Management System (ESMS) to be agreed with AIIB.

The Fund has an Environmental, Social and Governance (“ESG) policy, which commits the Fund to practicing sustainable development, socially responsible investing, and green finance. The Fund commits to enhancing its ESG policy by adopting an enhanced ESMS that requires the screening of potential investees against the ESEL, screening and categorization of environmental and social (ES) risks and impacts, conducting ES due diligence, and monitoring and reporting on the investee companies’ compliance against the applicable ES regulatory requirements in their jurisdiction of operation and, for higher ES risk transactions (Category A and high risk Category B transactions), the relevant ESSs. The enhanced ESMS acceptable to AIIB, will be adopted by the Fund manager’s prior to use of AIIB’s funds. The Fund commits to conduct ESMS training for the staff involved in the ESMS implementation.

The Fund will be required to create an External Communication Mechanism (ECM) to periodically disclose its investments and to address third-party views, enquiries or concerns regarding its own ES processes and outcomes, as well as ES impacts and performances of its portfolio companies. Investee companies using AIIB’s financing will be required to disclose the relevant ES information on their subprojects and to establish appropriate subproject-level grievance redress mechanisms (GRM).

AIIB will regularly review and validate the Fund’s ES screening, categorization, and due diligence of the initial subprojects to be financed using AIIB funds. The Fund will submit to AIIB an annual ES monitoring report on the ES performance of all AIIB-supported investments. AIIB will conduct regular monitoring of the Fund’s activities, including visits to selected subprojects.

AIIB

PROJECT TEAM LEADER

Stefen Shin

Principal Investment Officer,
Capital Markets & Structured Products

stefen.shin@aiib.org

 

PORTFOLIO MONITORING OFFICER

Rusu Lee

Senior Portfolio Management Officer

rusu.lee@aiib.org

BORROWER

Junfeng Wang

Managing Director, Legend Capital Co., Ltd

wangjf@legendcapital.com.cn

 

 

PROJECT DOCUMENTS

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