Private equity house Abraaj said it has teamed up with three financial institutions to set up North Africa Hospital Holdings Group, a $200 million healthcare group focused on Egypt and Tunisia.

The three partners are the European Bank for Reconstruction and Development (EBRD), Deutsche Investitions- und Entwickungsgesellschaft (DEG) and the Société de Promotion et de Participation pour la Coopération Economique (Proparco).

Abraaj will be the main investor in the healthcare group with $145 million, while EBRD is investing $25 million and DEG and Proparco are each investing $15 million each, according to a statement from Abraaj.

The healthcare group currently has four hospitals: Cleopatra Hospital and Cairo Medical Centre in Egypt, and Clinic Taoufik and Clinic La Soukra in Tunisia.

Development and upgrade projects at these hospitals are already underway, Abraaj said.

"Our investment in the North Africa Hospital Holdings Group is based on our capacity to bring our deep global experience in healthcare to markets that need and stand to benefit the most from them," said Ahmed Badreldin, partner and head of Middle East and North Africa at Abraaj.-Reuters