Microbial Production Of Industrial Enzymes Biology Essay

Microbial Production Of Industrial Enzymes Biology Essay Enzymes are biocatalysts produced by living cells to bring about specific biochemical reactions generally forming parts of the metabolic processes of the cells. Enzymes are highly specific in their action on substrates and often many different enzymes are required to bring about, by concerted action, the sequence of metabolic reactions performed by the living cell. All enzymes which have been purified are protein in nature, and may or may not possess a nonprotein prosthetic group. The practical application and industrial use of enzymes to accomplish certain reactions apart from the cell dates back many centuries and was practiced long before the nature or function of enzymes was understood. Use of barley malt for starch conversion inbrewing, and of dung for bating of hides in leather making, are examples of ancient use of enzymes. It was not until nearly the turn of this century that the causative agents or enzymes responsible for bringing about such biochemical reactions became known. Then crude preparations from certain animal tissues such as pancreas and stomach mucosa, or from plant tissues such as malt and papaya fruit, were prepared which found technical applications in the textile, leather,brewing, and other industries. HISTORY:- Dr. Jokichi Takamine (1894, 1914) was the first person to realize the technical possibility of cultivated enzymes and to introduce them to industry. He was mainly concerned with fungal enzymes, whereas Boidin and Effront (1917) in France pioneered in the production of bacterial enzymes about 20 years later.Technological progress in this field during the last decades has been so great that, for many uses, micro-bial cultivated enzymes have replaced the animal or plant enzymes. Once the favorable results of employing such enzyme preparations were established, a search began for better, less expensive, and more readily available sources of such enzymes.It was found that certain microorganisms produce enzymes similar in action to the amylases of malt and pancreas, or to the proteases of the pancreas and papaya fruit. This led to the development of processes for producing such microbial enzymes on a commercial scale Example, in textile desizing, bacterial amylase has largely replaced malt or pancreatin. At present, only a relatively small number of microbial enzymes have found commercial application, but the number is increasing, and the field will undoubtedly be much expanded in the future. Enzyme classification:-Presently more than 3000 different enzymes have been isolated and classified. The enzymes are classified into six major categories based on the nature of the chemical reaction they catalyze: 1. Oxidoreductases :- Catalyze oxidation or reduction of their substrates. 2. Transferases :- Catalyze group transfer. 3. Hydrolases :- Catalyze bond breakage with the addition of water. 4. Lyases :- Remove groups from their substrates. 5. Isomerases :- Catalyze intramolecular rearrangements. 6. Ligases :- Catalyze the joining of two molecules at the expense of chemical energy. Only a limited number of all the known enzymes are commercially available . More than 75 % of industrial enzymes are hydrolases. Protein-degrading enzymes constitute about 40 % of all enzyme sales. More than fifty commercial industrial enzymes are available and their number is increasing steadily PRODUCTION OF MICROBIAL ENZYMES Enzymes occur in every living cell, hence in all microorganisms. Each single strain of organism produces a large number of enzymes, hydrolyzing, oxidizing or reducing, and metabolic in nature. But the absolute and relative amounts of the various individual enzymes produced vary markedly between species and even between strains of the same species. Hence, it is customary to select strains for the commercial production of specific enzymes which have the capacity for producing highest amounts of the particular enzymes desired. Commercial enzymes are produced from strains of molds, bacteria, and yeasts Up until less than 10 years ago, commercial fungal and bacterial enzymes were produced by surface culture methods. Within the past few years, however, submerged culture methods have come into extensive use. For fungal enzymes, the mold is cultivated on the surface of a solid substrate. Takamine used wheat bran and this has come to be recognized as the most satisfactory basic substrate although other fibrous materials can be employed. Other ingredients may be added, such as nutrient salts, acid or buffer to regulate the pH, soy bean meal or beet cosettes to stimulate enzyme production. In one modification of the bran process, the bran is steamed for sterilization, cooled, inoculated with the mold spores and are then spreaded .Incubation takes place in chambers where the temperature and humidity are controlled within limits by circulated air. It may be stated that instead of trays for incubation, Takamine, as well as other producers, at one time used slowly rotating drums. Generally tray incubation gives more rapid growth and enzyme production. Bacterial enzymes have been and are also produced by the bran process. .Incubation takes place in chambers where the temperature and humidity are controlled within limits by circulated air However, until recently the process originally invented by Boidin and Effront was most extensively employed In this process, the bacteria are cultivated in special culture vessels as a pel licle on the surface of thin layers of liquid medium, the composition of which is adjusted for maximum production of the desired enzyme. Different strains of Bacillus subtilis and different media are employed, depending on whether bacterial amylase or protease is desired. PRODUCTION PROCESS OF INDUSTRIAL ENZYMES USING MICROBES Solid State Fermentation Solid-state fermentation (SSF) is a method used for the production of enzymes. Solid-state fermentation involves the cultivation of microorganisms on a solid substrate, such as grains, rice and wheat bran. This method is an alternative to the production of enzymes in liquid by submerged fermentation. SSF has many advantages over submerged fermentation. These include, high volumetric productivity, relatively high concentration of product, less effluent generated and simple fermentation equipment.. SSF requires moisture to be present on the substrate, for the microorganisms to produce enzymes. As a consequence the water content of the substrate must also be optimized, as a higher or lower presence of water may adversely affect the microbial activity. Water also has implications for the physicochemical properties of the solid substrate. Enzymes of industrial importance have been produced by SSF. Some examples are, proteases, pectinases, glucoamylases andcellulases Microorganisms used for the production of enzymes in S.S.F. A large number of microorganisms, including bacteria, yeast and fungi produce different groups of enzymes.Selection of a particular strain, however, remains a tedious task, especially when commercially competent enzyme yields are to be achieved. The selection of a suitable strain for the required purpose depends upon a number of factors, in particular upon the nature of the substrate and environmental conditions. Generally, hydrolytic enzymes, e.g. cellulases, xylanases, pectinases, etc. are produced by fungal cultures, since such enzymes are used in nature by fungi for their growth. Trichoderma spp. and Aspergillus spp. have most widely been used for these enzymes. Amylolytic enzymes too are commonly produced by filamentous fungi and the preferred strains belong to the species of Aspergillus and Rhizopus. Although commercial production of amylases is carried out using both fungal and bacterial cultures, bacterial a -amylase is generally preferred for starch liquefaction due to its h igh temperature stability. In order to achieve high productivity with less production cost, apparently, genetically modified strains would hold the key to enzyme production. Substrates used for the production of enzymes in SSF systems Agro-industrial residues are generally considered the best substrates for the SSF processes, and use of SSF for the production of enzymes is no exception to that. A number of such substrates have been employed for the cultivation of microorganisms to produce host of enzymes .Some of the substrates that have been used included sugar cane bagasse, wheat bran, rice bran, maize bran, gram bran, wheat straw, rice straw, rice husk, soyhull, sago hampas, grapevine trimmings dust, saw dust, corncobs, coconut coir pith, banana waste, tea waste, cassava waste, palm oil mill waste, aspen pulp, sugar beet pulp, sweet sorghum pulp, apple pomace, peanut meal, rapeseed cake, coconut oil cake, mustard oil cake, cassava flour, wheat flour, corn flour, steamed rice, steam pre-treated willow, starch, etc.Wheat bran however holds the key, and has most commonly been used, in various processes. The selection of a substrate for enzyme production in a SSF process depends upon several factors, mainly related with cost and availability of the substrate, and thus may involve screening of several agro-industrial residues. In a SSF process, the solid substrate not only supplies the nutrients to the microbial culture growing in it but also serves as an anchorage for the cells. The substrate that provides all the needed nutrients to the microorganisms growing in it should be considered as the ideal substrate. However, some of the nutrients may be available in sub-optimal concentrations, or even absent in the substrates. In such cases, it would become necessary to supplement them externally with these. It has also been a practice to pre-treat (chemically or mechanically) some of the substrates before using in SSF processes (e.g. ligno-cellulose), thereby making them more easily accessible for microbial growth. Design of bioreactor in Solid State Fermentations Over the last decade, there has been a significant improvement in understanding of how to design, operate and scale up SSF bioreactors. The key to these advances has been the application of mathematical modelling techniques to describe various physicochemical and biochemical phenomena within the system . The basic principle of SSF is the à ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€¦Ã¢â‚¬Å"solid substrate bedà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ã‚ . This bed contains the moist solids and an inter particle voids phase. SSF has been conventionally more applicable for filamentous fungi, which grow on the surface of the particle and penetrate through the inter particle spaces into the depth of the bed. The process in most of the cases is aerobic in nature. The suitable bioreactor design to overcome the heat and mass transfer effects, and easy diffusion and extraction of metabolites has become the topic of hot pursuit. While tray and drum type fermenters have been studied and used since long, much focus has been paid in last f ew years on developing packed bed fermenters as they could provide better process economics and a great deal of handling ease . A tray bioreactor could have unmixed beds without forced aeration of (manually) mixed bed without forced aeration. However, there has been no significant advances in tray design. Packed beds could be unmixed beds with forced aeration and rotating drums could have intermittent agitation without forced aeration, operating on continuous or semi-continuous mode. The bed could be agitated intermittently or continuously with forced aeration. Factors affecting enzyme production in SSF The major factors that affect microbial synthesis of enzymes in a SSF system include: selection of a suitable substrate and microorganism; pre-treatment of the substrate; particle size (inter-particle space and surface area) of the substrate; water content and aw of the substrate; relative humidity; type and size of the inoculum; control of temperature of fermenting matter/removal of metabolic heat; period of cultivation; maintenance of uniformity in the environment of SSF system, and the gaseous atmos-phere, i.e. oxygen consumption rate and carbon dioxide evolution rate. Submerged Fermentation Submerged fermentation is the cultivation of microorganisms in liquid nutrient broth. Industrial enzymes can be produced using this process. This involves growing carefully selected micro organisms (bacteria and fungi) in closed vessels containing a rich broth of nutrients (the fermentation medium) and a high concentration of oxygen. As the microorganisms break down the nutrients, they release the desired enzymes into solution. Due to the development of large-scale fermentation technologies, the production of microbial enzymes accounts for a significant proportion of the biotechnology industry total output. Fermentation takes place in large vessels (fermenter) with volumes of up to 1,000 cubic metres. The fermentation media sterilises nutrients based on renewable raw materials like maize, sugars and soya. Most industrial enzymes are secreted by microorganisms into the fermentation medium in order to break down the carbon and nitrogen sources. Batch-fed and continuous fermentation processes are common. In the batch-fed process, sterilised nutrients are added to the fermenter during the growth of the biomass. In the continuous process, sterilised liquid nutrients are fed into the fermenter at the same flow rate as the fermentation broth leaving the system. This will achieve a steady-state production. Parameters like temperature, pH, oxygen consumption and carbon dioxide formation are measured and controlled to optimize the fermentation process. Firstly, in harvesting enzymes from the fermentation medium one must remove insoluble products, e.g. microbial cells. This is normally done by centrifugation. As most industrial enzymes are extracellular (secreted by cells into the external environment), they remain in the fermented broth after the biomass has been removed. The biomass can be recycled as a fertiliser, but first it must be treated with lime to inactivate the microorganisms and stabilise it during storage. The enzymes in the remaining broth are then concentrated by evaporation, membrane filtration or crystallization depending on their intended application. If pure enzyme preparations are required, they are usually isolated by gel or ion exchange chromatography. Certain applications require solid enzyme products, so the crude powder enzymes are made into granules to make them more convenient to use. Sometimes liquid formulations are preferred because they are easier to handle and dose along with other liquid ingredients. Enzymes used in starch conversion to convert glucose into fructose are immobilised, typically on the surfaces of inert granules held in reaction columns or towers. This is carried out to prolong their working life as these enzymes normally go on working for over a year. Advantages of Submerged Technique Measure of process parameters is easier than with solid-state fermentation. Bacterial and yeast cells are evenly distributed throughout the medium. There is a high water content which is ideal for bacteria. Disadvantages: High costs due to the expensive media Large reactors are needed and the behaviour of the organism cannot be predicted There is also a risk of contamination. A TYPICAL LARGE SCALE MICROBIAL ENZYME PRODUCTION PROCESS Recovery of the enzyme It generally depends upon precipitation from an aqueous solution, although some enzymes may be marketed as stabilized solutions. In the bran process, the enzyme is extracted from the koj i (the name given to the mass of material permeated with the mold mycelium) into an aqueous solution by percolation. In the liquid processes, the microbial cells are filtered from the beer. The enzyme may be precipitated by addition of solvents, such as acetone or aliphatic alcohols, to the aqueous enzyme solution, either directly or after concentration by vacuum evaporation at low temperature. The precipitated enzyme may be filtered and dried at low temperature, for example in a vacuum shelf dryer. The dry enzyme powders may be sold as undiluted concentrates on a potency basis or, for most applications, may be diluted to an established standard potency with an acceptable diluent. Some common diluents are salt, sugar, starch, and wheat flour. Most commercial enzymes are quite stable in the dry form, but some require the presence of stabilizers and activators for maximum stability and efficiency in use. In theory, the fermentative production of microbial enzymes is a simple matter, requiring an appropriate organism grown on a medium of optimum composition under optimum conditions. The stocks in trade of microbial enzyme manufacturers are thus the selected cultures, the composition of media, and the cultural conditions, all of which are usually held confidential. In practice, enzyme manufacturers suffer the samedifficulties in fermentation, frequently in even greater degree, as antibiotics producers. Total loss of fermentation batches may result from contamination, culture variation, failure of cultural control, and other like causes. Furthermore, knowledge and careful application of the best methods for recovery and stabilization APPLICATIONS OF MICROBIAL ENZYMES IN INDUSTRIES Detergents were the first large scale application for microbial enzymes. Bacterial proteinases are still the most important detergent enzymes. Some products have been genetically engineered to be more stable in the hostile environment of washing machines with several different chemicals present. These hostile agents include anionic detergents, oxidising agents and high pH. Amylases are used in detergents to remove starch based stains. Amylases hydrolyse gelatinised starch, which tends to stick on textile fibres and bind other stain components. Cellulases have been part of detergents since early 90s. Cellulase is actually an enzyme complex capable of degrading crystalline cellulose to glucose. In textile washing cellulases remove cellulose microfibrils, which are formed during washing and the use of cotton based cloths. This can be seen as colour brightening and softening of the material. Alkaline cellulases are produced by Bacillus strains and neutral and acidic cellulases by Trichoderma and Humicola fungi. Starch hydrolysis and fructose production The use of starch degrading enzymes was the first large-scale application of microbial enzymes in food industry. Mainly two enzymes carry out conversion of starch to glucose: alpha-amylase cuts rapidly the large alpha-1,4-linked glucose polymers into shorter oligomers in high temperature. This phase is called liquefaction and is carried out by bacterial enzymes. In the next phase called saccharification, glucoamylase hydrolyses the oligomers into glucose. This is done by fungal enzymes, which operate in lower pH and temperature than alpha-amylase. Sometimes additional debranching enzymes like pullulanase are added to improve the glucose yield. Beta-amylase is commercially produced from barley grains and used for the production of the disaccharide maltose. An alternative method to produce fructose is shown in Figure 4. This method is used in Europe and uses sucrose as a starting material. Sucrose is split by invertase into glucose and fructose, fructose separated and crystallized and then the glucose circulated back to the process. Drinks And Brewing Industries Enzymes have many applications in drink industry. The use of chymosin in cheese making to coagulate milk protein was already discussed. Another enzyme used in milk industry is beta-galactosidase or lactase, which splits milk-sugar lactose into glucose and galactose. This process is used for milk products that are consumed by lactose intolerant consumers. Enzymes are used also in fruit juice manufacturing. Fruit cell wall needs to be broken down to improve juice liberation. Pectins are polymeric substances in fruit lamella and cell walls. They are closely related to polysaccharides. The cell wall contains also hemicelluloses and cellulose. Addition of pectinase, xylanase and cellulase improve the liberation of the juice from the pulp. Pectinases and amylases are used in juice clarification. Brewing is an enzymatic process. Malting is a process, which increases the enzyme levels in the grain. In the mashing process the enzymes are liberated and they hydrolyse the starch into soluble fermentable sugars like maltose, which is a glucose disaccharide. Additional enzymes can be used to help the starch hydrolysis (typically alpha-amylases), solve filtration problems caused by beta-glucans present in malt (beta-glucanases), hydrolyse proteins (neutral proteinase), and control haze during maturation, filtration and storage (papain, alpha-amylase and beta-glucanase). Textiles Industries:- The use of enzymes in textile industry is one of the most rapidly growing fields in industrial enzymology. Starch has for a long time been used as a protective glue of fibres in weaving of fabrics. This is called sizing. Enzymes are used to remove the starch in a process called desizing. Amylases are used in this process since they do not harm the textile fibres .The same effect can be obtained with cellulase enzymes. The effect is a result of alternating cycles of desizing and bleaching enzymes and chemicals in washing machines. Laccases are produced by white-rot fungi, which use them to degrade lignin the aromatic polymer found in all plant materials. Laccase is a copper-containing enzyme, which is oxidised by oxygen, and which in an oxidised state can oxidatively degrade many different types of molecules like dye pigments. Pulp And Paper Industry Intensive studies have been carried out during the last twenty years to apply many different enzymes in pulp and paper industry. The major application is the use of xylanases in pulp bleaching. Xylanases liberate lignin fragments by hydrolysing residual xylan. This reduces considerably the need for chlorine based bleaching chemicals. Other minor enzyme applications in pulp production include the use of enzymes to remove fine particles from pulp. This facilitates water removal. In the use of secondary (recycled) cellulose fibre the removal of ink is important. The fibre is diluted to 1% concentration with water, flocculating surfactants and ink solvents added and the mixture is aerated. The ink particles float to the surface. There are reports that this process is facilitated by addition of cellulase enzymes. In paper making enzymes are used especially in modification of starch, which is used as an important additive. Starch improves the strength, stiffness and erasability of paper. The starch suspension must have a certain viscosity, which is achieved by adding amylase enzymes in a controlled process. Pitch is a sticky substance present mainly in softwoods. It is composed of lipids. It is a special problem when mechanical pulps of red pine are used as a raw material. Pitch causes problems in paper machines and can be removed by lipases. This facilitates water removal. In the use of secondary (recycled) cellulose fibre the removal of ink is important in the process Baking Industry :- Similar fibre materials are used in baking than in animal feed. It is therefore conceivable that enzymes also affect the baking process. Alpha-amylases have been most widely studied in connection with improved bread quality and increased shelf life. Both fungal and bacterial amylases are used. Overdosage may lead to sticky dough so the added amount needs to be carefully controlled. One of the motivations to study the effect of enzymes on dough and bread qualities comes from the pressure to reduce other additives. In addition to starch, flour typically contains minor amounts of cellulose, glucans and hemicelluloses like arabinoxylan and arabinogalactan. There is evidence that the use of xylanases decreases the water absorption and thus reduces the amount of added water needed in baking. This leads to more stable dough. Especially xylanases are used in whole meal rye baking and dry crisps common in Scandinavia. Proteinases can be added to improve dough-handling properties; glucose oxidase has been used to replace chemical oxidants and lipases to strengthen gluten, which leads to more stable dough and better bread quality. Various Important Microbial Enzymes Carbohydrases Carbohydrases are enzymes which hydrolyze polysaccharides or oligosaccharides. Several carbohydrases have industrial importance, but the amylases have the greatest commercial application. The various starch-splitting enzymes are known as amylases, the actions of which may be expressed in greatly simplifiedform as follows: The terms liquefying and saccharifying amylases are general classifications denoting the principal types of amylase action. f-Amylase, which is not of microbial origin, is a true saccharifying enzyme, forming maltose directly from starch by cleaving disaccharide units from the open ends of chains. The a-amylases from different sources usually have good liquefying ability, but may vary widely in saccharifying ability and thermal stability. Bacterial amylase preparations generally remain operative at considerably higher temperature than do fungal amylases, and at elevated temperatures give rapid liquefaction of starch. A significant application of the bacterial enzyme is in the continuous process for desizing of textile fabrics Another is in preparing modified starch sizing for textiles and starch coatings for paper High temperature stability is also important in the brewing industry where microbial amylases have found use in supplementing low diastatic malt, and especially for initial liquefaction of adjuncts such as rice and corn grits Additional specific uses for bacterial amylase is in preparing cold water dispersible laundry starches and in removing wall paper. Fungal amylases possess relatively low thermal stability but act rapidly at lower temperatures and produce good saccharification. An enormous potential use for fungal amylase is as a saccharifying agent for grain alcohol fermentation mashes. At least two alcohol plants in this country regularly use fungal amylase for this purpose An extremely important use for fungal amylases isin conversion of partially acid hydrolyzed starch tosweet syrups Amylases find extensive use in baking. Use of fungal amylase by the baker to supplement the diastatic activity of flour is common practice. The fungal amylase has the advantage of low inactivation temperature. This permits use of high levels of the amylase to improve sugar production, which increases gas formation and improves crust color, without danger of excessive dextrinization of the starch during baking Other applications of microbial amylases where both fungal and bacterial enzymes are utilized are in processing cereal products for food dextrin and sugar mixtures and for breakfast foods, for preparation of chocolate and licorice syrups to keep them from congealing, and for recovering sugars from scrap candy of high starch content. Fungal amylases are also used for starch removal for flavoring extracts and for fruit extracts and juices, and in preparing clear, starch-free pectin. Microbial amylases are used for modifying starch in vegetable purees, and in treating vegetables for canning PROTEASES Industrially available proteolytic enzymes produced by microorganisms are usually mixtures of endopeptidases (proteinases) and exopeptidases. In addition to microbial proteases, the plant proteases bromelin, papain, and ficin, and the animal proteases, pepsin and trypsin, have extensive industrial application. Because of the complex structures and high molecular weights of proteins made up of some 20 different amino acids, enzymic proteolysis is extremely complicated. Most proteases are quite specific with regard to which peptide linkages they can split Hence, it is necessary to select the appropriate protease complex or combination of enzymes for specific applications. Usually this can only be determined by trial and error methods. By means of such experimentation, however, many and diverse uses have been found for the various proteases. With proper selection of enzymes, with appropriate conditions of time, temperature, and pH, either limited proteolysis or complete hydrolysis of most proteins to amino acids can be brought about. Microbial proteolytic enzymes from different fungi and bacteria are available. Most fungal proteases will tolerate and act effectively over a wide pH range (about 4 to 8), while with a few exceptions, bacterialproteases generally work best over a narrow range of about pH 7 to 8. Fungal protease has been used for centuries in the orient for the production of soy sauce, tamari sauce, and miso, a breakfast food After maximum enzyme production has taken place, the koji is covered with brine and enzymatic digestion allowed to take place. Limited use is made of this process for making soy sauce in this country also. In these uses, no attempt is made to separate the enzymes from the producing organisms. For most industrial applications, the microbial proteases are extracted from the growth medium as described in an earlier section of this paper. One of the largest uses for fungal protease is in baking bread The proper amount of protease action reduces mixing time and increases extensibility of doughs, and improves grain, texture, and loaf volume. However, excess of protease must be avoided, and the time for enzyme action and quantity of enzyme used must be carefully controlled by the baker or sticky, unmanageable doughs will result. Cereal foods are also treated with proteolytic enzymes to modify their proteins, resulting in better processing

Democrats and Republicans

Aida Krafess Rosie Branciforte ENC 1101 April 8, 2013 Democrats and Republicans The United States of America is known to have two major political parties. The Republican party and the democratic one. Both parties are based on views and principles being completely opposites of each other. The Republican party is known to be a conservative party, while the democratic party is known to be liberal. Two concepts that are opposites to each other.The democratic party will most certainly convince the majority of the people that it is the ideal party to remain in office because it promotes economic equality, it advocates civil rights and individual freedom, and because it is a liberal party. The two major U. S political parties have different policies and views. These two parties being Democrats and Republicans. Economically, republicans promote more equality because their taxes are the same for everyone. This means that taxes should not be higher for people with a higher income or lower for people with a lower income.They also believe that by minimizing government spending they would be able to balance their budget. Republicans also support the constitution to the highest degree. They are convinced that its laws are flawless, and want the constitution to become the base of U. S law, and do not believe in the majority rule. A rule that states that the vote of of the majority of the people should either make or banish a law. Republicans are also known to be conservatives. The word conservative is defined as the holding to traditional attitudes and values and being cautious about change or innovations.Republicans would very much like to live their lives the way the founding fathers of America had without having to go through change or innovation. (Gould 565-483) At a first glance at the economic views of the republicans, it is common to find it more equal. However, why should a person that makes minimum wage pay same taxes as the C. E. O of an international corporation. T he democratic party has different points of views on tax reform policies. The party believes in equality therefore it constructed its 2012 tax reform policy to cut taxes for every working family, and not for millionaires. Black, 565-483) This means that every working family still pays taxes, however their taxes would be cut, meaning they would be paying less taxes than before. As for the â€Å" millionaires† and higher class of society they will still pay the same taxes as they did before. This policy is more likely to be considered as equal because it is not rated fair when people from different social classes with a big difference in their incomes pay the same taxes. Especially because the taxes will eventually be lowered for the lower classes because they would be unable to afford paying the regular and high taxes.This will also lead in the cut of taxes for the high social class, which then makes the whole concept unequal. Not just for the people but also for the national economy (Witcover, 791-545). A democracy is a system of government by the whole population or all the eligible members of a state, typically through elected representatives. The democratic party is also known for being the party of the people. It is the the oldest political party and has origins that fall back all the way to Thomas Jefferson, and Andrew Jackson.Thomas Jefferson was one of the founding fathers, one of the main authors of the Declaration of independence, and the third president of the United States. As for Andrew Jackson he was the seventh president of the United States and influenced his followers to create a modern democratic party. In a democracy it is essential for everyone to vote. It is considered as defending a point of view and opinions (Bass, 437-83). The democratic party is mostly concentrated on making all the people have equal rights, both women and men. Allowing each of them to have individual freedom.A freedom that a person has full control over until it is misused and breaks the law. The democratic party is for women having complete right to make their own decisions. For example, if a women decides to get an abortion, it would be possible for her to do so. (Black, 565-483) It remains a choice the woman has to make. A choice that is not restricted by law. In a democratic party, people are allowed to vote to promote what they would like. For example if it is illegal in a state for a homosexual couple to get married, and the majority of the state votes for this law to be banished.It is most likely that gay marriage will become legal in that state. These concepts all advocate individual freedom, and equality (Bass 437-84). The democratic party is a party that favors liberal positions. The word liberal is defined as being open to new behavior or opinions and will to discard traditional value (Bass 437-84). Modern American liberalism unifies social liberalism, social justice, and a mixed economy. Theses three theories have allowed abort ion rights for women, gar rights, and government strategies for education and healthcare.Liberals also favor diplomacy over military action. Which could only make the people of any country feel safer. Diplomacy would help resolve many word conflicts, and could even prevent war, or incidents that might result in tragic outcomes. Liberals also favor the separation of church and state. This measures the restraint between a religion and the way laws of a nation are built. All of these facts influence the chain of thoughts democrats have. However, their chain of thoughts could not be influenced by a bias opinion based on religion or tradition.It could only be influenced by current events, and new ways to deal with different and repeated situations, and by the majority of votes (Witcover, 791-545). To conclude, in this actual context, the socio-democrat political model of the democratic party seems to be the one that fits best the expectations of the vulnerable population. This political party also compromises between the conservative values of the american society and its constant changes. Therefore,   the arguments mentioned above explain the mandate renewal that americans expressed in the last elections.Works cited Bass, Harold Franklin. Historical Dictionary of United States Political Parties. Lanham, MD: Scarecrow, 2000. 437-84. Print. Black, Earl, and Merle Black. Divided America: The Ferocious Power Struggle in American Politics. New York: Simon & Schuster, 2007. Print. Gould, Lewis L. Grand Old Party: A History of the Republicans. 1st ed. New York: Random House, Inc. , 2003. 565-483. Print. Witcover, Jules. Party of the People: A History of the Democrats. New York: Random House, 2003. 791-545. Print.

Belgacom Case Study

Belgacom Case Question 1 a) Why did the share price of Belgacom increase following the announcement of the acquisition? b) Why did the ratings of Belgacom drop (S&P) or put on negative watch (Moody’s)? a) As Belgacom secured the purchase of the remaining 25% share of Proximus it did not own yet, the share price of the Belgian company increased by 0. 92 % the same day and 9. 8% over the following month. An announcement can lead to pre-event abnormal returns as markets react to this information to get a premium.Investors will try to assess the increase in expected earnings and dividends. The impact of this assessment will depend on how the merger is done, how the transaction is paid, the sector it concerns, etc. However, according to market efficiency theories, overreaction on stock prices tend to disappear in the long-run and the price reflects the present value of expected returns. (FAMA, 1998) That being said, several reasons may explain this jump.First, we can underline the fact that this operation enables Belgacom to collect all the benefits of Proximus. Before the purchase, 25% of the earnings of Proximus were placed in minority interests, these were payable to Vodafone. After the operation, Belgacom owns 100% of the shares and can enter all the cash of its subsidiary in its accounts. It represents an increase of the future cash flow not only for the firm but also for its current shareholders, which will be comforted to receive more in the future or that their shares represent more cash.This is due to the decision of Belgacom to finance its acquisition by debt which doesn’t give ownership rights to the bond owners. Fig. 1: Evolution of Belgacom Share Price (2005-2008) Second, Belgacom was familiar with Proximus business as Belgacom (75%) founded the company with Airtouch (25%) in 1994, creating by this way the first mobile phone operator in Belgium. b) Unlike the market, rating agencies did not welcome positively this transaction: Moodyâ€℠¢s changed its outlook to negative and Standard&Poors downgraded Belgacom rating to A from A+. Moody’s xplained that it keeps Belgacom’s rating unchanged because according its methodology designed for GRI (Government-Related Issues), there is no change in Belgacom solvability. Moody’s GRI methodology use three inputs: the rating and the outlook of Belgium, the low level of default dependence and the medium level of support from the Belgian government. While there is no change in those inputs, there should be no change in Belgacom rating. That being said, several indicators lead the agency to wonder about the ability of the Belgian company to deal with its creditors.First, Belgacom announced a bunch of outflows for the months to come: just at the same time, Belgacom decided to sell its 5,8% stake in Neuf Cegestel to SFR: the outcome of the operation was EUR 187 million plus a share buyback (maximum 200 million) and a dividend in 2006 for EUR 100 million. Futhermo re, Belgacom decision to use its current financial stability and therefore weaken its debt ratios. As for Standard&Poors, the agency decided to downgrade the rating of the Belgian firm from A+ to A.S&P said this decision lies on the fact that the Belgacom debt will rise of about EUR 2 billion, making notably increase the debt/Ebitda ratio from 0,8 to 1,9. Moreover, its business in a competitive and liberalized market, as well as the decline of fixed lines market make fear for future results of the company. However, the outlook remains stable, that can be explained by the strong position of the company on the Belgian telecom market and its huge ability to generate cash. Question 2 a) Why was the acquisition financed by a bridge loan? ) What were the alternative financing sources? a) Bridge loans are short-term financial instruments usually used to lock-in a settled price( (frequent in Real Estate Market). This practice buys time for the deal maker to sort things out and to better str ucture its financing scheme. This seems to be the main rationale for Belgacom in this case. The management wanted to lock-in the price agreed on with Vodafone and as the deal was subordinated to the Belgian Authorities approval, it was more cautious to make it happen right away.Yet there is another way to see a bridge loan as a temporary expensive loan serving the purpose of being an intermediate financing mean for the company that benefits from it (Fabozzi, 1991). Later on, this bridge loan is reimbursed with more advantageous types of loans. was in fact a syndicated loan underwritten in order to finance an acquisition. As a matter of facts, the loan was made by several lending institutions called the mandated lead arrangers i. In the case of Belgacom, the company took a bridge loan for several reasons that are detailed below.The bridge loan e. BNP Paribas, Citi, Fortis, ING and JP Morgan. For the investment banks that underwrite the syndicated loan, the main interest resides in th e fact that they gain a fee. In this specific case, the bridge loan was arranged as a revolving credit instrument type. This meant Belgacom had to pay a fee plus interest expenses and can draw-repay-redraw as many times as needed. As said before, a first valid reason would be that the cash was needed quickly (maybe) and bridge loans are arranged more quickly.In any case it is in the best interest of the company (Belgacom here) to reimburse the bridge loan as quickly as possible because it is very expensive and the interest rate generally increases with the maturity. Moreover issuing corporate bonds takes time. In fact, there are four main steps to issue a bond in the bond market. First, there is the pre-mandate phase which aims to determine the funding needs or whether it is the right time to tap the bond market. Additionally, the currency has to be determined, the market as well plus the targeted investors.After that, comes the book building process which is one of the most importa nt tasks that consists of taking the orders from the investors. Then, a range for the coupon rate has to be determined and the amounts have to be allocated to the investors. Those steps could typically take weeks. Helping companies with short term funding is thus a major need for the client. Another reason may be that it gives Belgacom time to wait for more favourable economic conditions for issuing the bonds. Depending on investor’s appetite, timing is in fact crucial in such deals.Now, from the investment bank’s perspective, there is possibly a conflict of interest as the investment bank is at the same time creditor (through the bridge loan) and the entity that prices the securities that will be used to reimburse this loan. One could argue the investment bank could lack objectivity (Glazer, 1989). However, this constitutes an additional incentive for the book runners to successfully carry the deal to its end. Additionally, four of the five banks that granted the brid ge loan became the joint book runners. To that extent, there are clearly business interests which are involved.This can be interesting for the investment bank in order to get closer to the client. Moreover, this form of short term financing is more expensive for the company because it bears higher risks. Alternatively, it means that it is more lucrative for the investment bank as well. To sum up, bridge loans seem to be a lucrative source of profits for investment banks. First, they place themselves in a comfortable position to issue bonds for the company later on. Second, they can diversify their revenues and be a good candidate for the bond issuance.As a matter of facts, four of the five banks providing the bridge loan took care of bond issuance. b) Alternatives to bridge loans were traditionally letters of comfort written by the investment bank stating that the bank was ‘highly confident’ that the additional financing needed by the company could be obtained. This imp lies no bridge funding at all. Hence the alternative would be to wait for the bonds to be issued. The risk here however would consist of being too late for acquiring the target. Another alternative would be to use your own capital to fund the acquisition in the short run.This depends, of course, on the ability of Belgacom to generate such a large amount of cash. Yet another option would have been to raise more capital by issuing shares with the agreement of its existing shareholders. However, this option could have been detrimental to existing shareholders: the Belgian state which had a major stake in Belgacom with 50. 1% of the shares. Here is a summary of all the plausible alternatives: * Pay with retained cash: Belgacom could put 2Bnâ‚ ¬ on the table for Vodafone’s stake (assuming that the amount was available at the time).Although, this is known as the worst case scenario for current shareholders. Putting the cash in an acquisition would also have constrained Belgacom to lower (even cancel) its expansion investments. * Go straight to the Market: Belgacom could issue the bonds without taking the bridge loan but since the company had no prior bonds outstanding in the secondary market, the pricing would have been necessary anyway and it takes time and money to process it. The risk in that case is the agreement with Vodafone; other players could profit from the info and buy the stake in order to sell it back to Belgacom at a premium.Question 3 Assuming the 5-year swap rate was 3. 922% and the 10-year swap rate was 3. 977% at the time of pricing the deal (primary market), could you calculate: a) The yield for investors The yield is composed of the risk-free interest rate and the risk premium. The risk-free rate is usually defined as the rate of a government bond or the interbank rates (ex: Euribor) for the same maturity. However, the swap rate is used for maturities beyond 12 months. Here, the explanatory statement assumes that the 5-year and the 10-y ear swap rate were respectively 3,922% and 3,977%.The credit spread or risk premium depends on the maturity and the quality of the issuer. After comparing the coupon offered by companies with the same risk profile from the telecom peer group in the secondary market, the explanatory note explains banks’ position which suggested to issue the 5Y bond and the 10 Y bond with a spread guidance of respectively 30-35 bp and 60-65 bp. Bonds 5 and 10 years| Years to| 2006| | | Maturity| 5 years| 10 years| | | Swap Rate (rf)| 3,92%| 3,98%| | | | Min| Max| Min| Max| | | Risk Premium| 0,30%| 0,35%| 0,60%| 0,65%| | |Face Value| â‚ ¬ -100,00| â‚ ¬ -100,00| â‚ ¬ -100,00| â‚ ¬ -100,00| | | Yield to Maturity| 4,222%| 4,272%| 4,577%| 4,627%| | | Coupon Rate| 4,125%| 4,250%| 4,500%| 4,625%| | | Price â‚ ¬| â‚ ¬ 99,57| â‚ ¬ 99,90| â‚ ¬ 99,39| â‚ ¬ 99,98| | | Price %| 99,57%| 99,90%| 99,39%| 99,98%| | | Fees| 0,15%| 0,15%| 0,25%| 0,25%| | | Proceeds| 99,42%| 99,75%| 99,1 4%| 99,73%| | | Cost %| 4,256%| 4,306%| 4,609%| 4,659%| | | Table 1: Results for the Bond Issuance Thus, the yield for investors should be the sum of the risk-free and the risk premium rate: * Min. 4,222% and max. 4,272% for the 5-year bond * Min. 4,577% and max. 4,627% for the 10-year bond ) The coupon rate The coupon rate is the amount of interest payable on the bond. It is important to keep in mind that the market practices want the yield to vary by steps of 0,125%. Therefore, according to table 1, the yield for the investor varies between 4,125 and 4,250 for a 5-year maturity bond and 4,5% and 4,625% for a 10-year maturity bond. c) The issue price The issue price is the price at which investors buy the bonds in the primary market. The bond issue price is the present value of the bond’s cash flow. To obtain this price, we have to use the coupon rate, the face value and the yield for investor as described in this formula:Issue Price = Coupon 1(1+y)+ Coupon 2(1+y)? +†¦ +Coupon n1+yn+ Face value1+yn At issuance, the subscriber will pay: * Min. 99,57%, Max 99,90% for a maturity of 5-year * Min. 99,39%, Max 99,98% for a maturity of 10-year d) The cost for Belgacom The cost to maturity for the issuer y is defined as: Issue Price – Fees of the bookrunners = Coupon 1(1+y)+ Coupon 2(1+y)? +†¦ +Coupon n1+yn+ Face value1+yn The rate y solving (cost to maturity) this equation is: * Min. 4,256%, Max 4,306% for a maturity of 5-year * Min. 4,609%, Max 4,659% for a maturity of 10-year e) Cash Flows Here are the cash flows for the issuer. For a maturity of 5 years: At inception (time 0), the issuer receives (99,57%-0,15%)=99,42% multiplied by the total face value. Every year for 5 years, the issuer pays the coupons of 4,125% * face value of the bonds At maturity, the issuer has to repay the whole face value plus the last coupon. | | | | | | | | | | | | Cash Flows as % of Face Value| 5y-Bond| 0| 1| 2| 3| 4| 5| | | | | | Bottom| 99,42| -4,125| -4,125| -4,125| -4,125| -104,125| | | | | | Up| 99,75| -4,25| -4,25| -4,25| -4,25| -104,25| | | | | | | | | | | | | | | | | | 10y-Bond| 0| 1| 2| 3| 4| 5| 6| 7| 8| 9| 10|Bottom| 99,14| -4,50| -4,50| -4,50| -4,50| -4,50| -4,50| -4,50| -4,50| -4,50| -104,50| Up| 99,73| -4,63| -4,63| -4,63| -4,63| -4,63| -4,63| -4,63| -4,63| -4,63| -104,63| | | | | | | | | | | | | Question 4 Consider an outstanding corporate bond in the secondary market (issued a few months ago). All else being equal, the market suddenly perceives a more important credit risk associated with the considered issuer. What impact should it have on: a) The credit spread The credit risk is the risk that the issuer may default and not pay back the full amount he owes to bondholders (the total face value of the bonds).The credit spread translates the uncertainty about potential future stock price movements†. (Berk, 2011) If the market suddenly perceives more important credit risk associated with the issuer, the credit spread will widen as the market is perceived has being relatively safer. The payoff associated to extra credit risk is a higher yield. Therefore, the credit spread represents a bonus for investors when supporting extra risks. Fig 2: Yield curves Source: CFA b) The yield There are two components in the yield: the risk free rate and the credit spread. All else being equal, if the credit spread widens, the yield increases. ) The price Investors want to pay less for a risky bond having the same pay-offs as a risk-free bond. By taking more risk, the final amount the investor expects to receive may be less than what he will get as there is a credit default risk. (Berk et al. , 2011) The variable on which the market has a direct influence on in order to adjust for a higher yield is the market price. Due to the negative relation between the yield and the price and if the coupon payments and the principal repayment remain unchanged, the price must decrease in order to translate the surge in the yield.T his is particularly relevant when the issuer is the target of a leveraged buyout, which, in most cases, is leveraged by the issuance of new bonds. The increased debt used in order to make such financial actions often decrease the totality of the bonds of the issuer to a status of  «Ã‚  junk bonds  Ã‚ ». Question 5 How would you assess Belgacom’s position with regard to the qualitative factors enumerated to assess the pricing ? * Issue premia for recent transaction First of all, this is the first bond offering issued by Belgacom.Therefore, it cannot be referred to a previous premium offered in its own recent transactions. Therefore, the reference will be the telecom peer group having the same risk profile. * After market performance of recently launched deals The issue premia have widened for two main reasons. First, a trend towards more acquisition in the Telecom sector since 2005. Second, the Telecom sector suffers from the fact its services are more and more commoditize d which in turn may hurt the profitability of a Telecom company. At the time it was expected the bond could be split in three types.A floating rate note and two fixed rate notes. It was expected the 3-year FRN had a spread of 15bp to 20bp whereas the fixed 5-year note would have a 30bp to 35bp spread. Finally the 10-year note would have had a spread of 60bp to 65bp. With regards to recent transactions, Deutsche Telekom was offered a spread of 20bp for a 3-year floating note. 15-20bp is thus potentially better for Belgacom. As far as the fixed notes are concerned, Belgacom seems to benefit for a slightly better spread for 10-year notes but not for the 5-year ones as the one of Deutsche Telekom was only of 17bp in April 2006. Date| Swap 5-y| Swap 10-y| Coupon| Spread(bp)| Currency| Amount| Deutsche T| April 2006| 3. 83%| | 4%| 17| EUR| 750m| Deutsche T| May 2006| | 4. 13%| 4. 75%| 62| EUR| 500m| Telefonica| Feb 2006| 3. 42%| | 3. 75%| 33| EUR| 2250m| Telefonica| Feb 2006| | 3. 68%| 4. 37%| 69| EUR| 1750m| Vodafone| Jun 2006| | 4. 07%| 4. 75%| 68| EUR| 300m| * Are investors liquid? (hedge funds) However, according to the case, investor’s appetite remained high at that time. In fact, bond issuances remained low because corporates generated increasingly more cash flows and made use of cheaper ways of funding. Market sentiment? (world, Belgium, politics) There has been a lot of deleveraging followed by acquisitions in the past years. Moody’s says the economy of Belgium is only weakly correlated with Belgacom’s credit quality. However, for companies that are partly owned by the state, the credit quality of the Sovereign may play a greater role. At that time however, there was no political complications in Belgium yet. In 2006, the subprime crisis had not begun yet either. Hence one could argue the political setting was relatively clear.Moreover, there were strong liberalization policies pushed by the EC and investors were afraid that the Belgian state would disinvest in Belgacom after the following elections. The Belgian state had already to divest, keeping 50,1% of the share. Therefore, investors wanted an insurance against a change of control in case the Belgian State sold his participations but also to cover the risk against an LBO. As Belgacom could not introduce a step-up language, it could have had an impact on the credit spread by increasing it. * Credit Spread volatility Credit spread rose significantly more for telecom companies in 2005-2006.This was due to the fact the telecom companies ventured more in acquisition activities during that period. 5-year and 10-year credit spread for A-rated telecom companies respectively rose 10bp and 20bp during that period. * Saturation effect in investors portfolio? Are investors sick of telecom bond issuances? In principle, investors were not sick of telecom bond issuances as the one of Belgacom would add diversification to their portfolio. What is more, Belgacom was seen as a safe and relatively liquid company as they were previously weakly leveraged. * Amount raised in the pastAs far as Belgacom is concerned, the company has never issued any bond. Hence this was a premiere for the company. If we look at the issue amount of comparable transactions in the peer group of the same year, telecom issuers have issued in 2006 from three to 5 times with an issue amount from 500 million. For example, Telefonica issued in 2006 a total of 11. 750 million â‚ ¬ * Credit quality of issuer and peers In terms of credit quality, Belgacom is better than most competitors. This is mostly due to the fact that Belgacom was weakly leveraged before the issuance.For instance, EBITDA/Interest expenses of France Telecom, Telecom Italia and KPN was between 2. 4x and 7. 2% while Belgacom’s was 93x. However, Belgacom wasn’t the best according to credit rating agencies. The considered peer group is made of France Telecom, Telecom Italia, KPN and Belgacom. Moreover, Moo dy’s seems to give to Belgacom a better rating that Fitch. Therefore, we may suppose that Belgacom’s cost of issuance may be slightly lower than those of his peer group. Question 6 What is a change of control put provision? How would it have protected investors?Why did some investors think the step-up language would not be useful? Looking at the step-up language, what would be the coupon rate if the rating of Belgacom was downgraded a) to BBB- (S&P)/Ba1 (Moody's)? b) to BB+ (S;P)/Ba1 (Moody's)? A change of control put provision is an option given to the bondholder to get its bond repaid before maturity at par or above, in the event of change of control followed by a rating downgrade (e. g. after an LBO). Companies may be reluctant to issue bonds including this clause, because it can place more constraints on their finances as investors have the power to control repayments.Besides, it protects investors so they can have the opportunity to change their investment decisio n strategy if the issuer would happen to change its ownership. In case of a LBO, for example, the ownership of the company is transferred by using debt relying on the future cash flows of the company. According to (Rosenbaum et al. , 2007), â€Å"a target only represents an attractive LBO opportunity if it can be purchased at a price and utilizing a financing structure that provides sufficient returns with a viable exit strategy. In such a case, a former bondholder would see the credit risk he faces considerably increase, given the amount of additional debt supported by the company. This clause should then enable a bond investor to exit his position without bearing that increased risk because firstly, the change of control was likely, since the Belgian government was seeking to sell its stake in Belgacom and secondly because some argued that the inclusion of a step-up language taking the form of a +50bp in interest payment per downgrade below investment grade would be far from comp ensating the additional risk they would be bearing.In the case of Belgacom, there were some concerns about this possible withdrawal of Belgian state from its majority stake, intensified by the fact that the company could also be the target of a potential LBO operation as explained above. In order to reassure prospective investors and consequently lower interest rates for long term bonds (10 years), it has been considered to include such a clause in the deal. Therefore, Belgacom finally decided to add a step-up language despite the concerns emitted by some investors.The main benefit of the step-up language is that investors will usually get the initial coupon above the market and will also know what is to expect from their bond(s) over a longer-term period. However, bonds including a step-up language present the disadvantage of being callable by the issuer in order to issue it at lower rate to reduce their cost of borrowing which is the reason why some investors were reluctant concer ning the step-up. In the case of Belgacom, a downgrade in the rating would have had the following impact on the coupon rate: ) If the rating of Belgacom would have been downgraded to BBB- (S&P) / Ba1 (Moody's) and if the lowest rating is taken into account which is Ba1 (one grade below investment grade), the interest paid (coupon rate) would have increased by +50bp. b) In this scenario, both rating agencies consider a one notch downgrade below investment grade leading therefore to a +50bp increase in the interest rate paid. Bibliography BERK J. , DeMARZO P. (2011) â€Å"Corporate Finance – Global edition† Second edition, Pearson edition, pp. 001 FABOZZI F. (1991) â€Å"The handbook of Fixed Income Securities†, Mc Graw-Hill edition, Third edition, p. 224 FAMA E. (1998) â€Å"Market efficiency, long-term returns, and behavioral finance† Journal of Financial Economics, 49, pp. 283-306 GLAZER A. (1989) â€Å"Acquisition bridge financing by investment banks à ¢â‚¬â€œ bridge financing, as source of revenue for investment bankers, poses risk and conflict of interest† Business Horizons magazine, Sep-Oc 1989, Website: http://findarticles. om/p/articles/mi_m1038/is_n5_v32/ai_8120675/ (Seen in April 2012) ROSENBAUM J. , PEARL J. (2009)  «Ã‚  Investment Banking  : Valuation, Leveraged Buyouts and Mergers ; Acquisitions  Ã‚ » Wiley finance Vodafone Non Official Website  : www. vodafonews. com/belgique. html (Seen in April 2012) ——————————————– [ 1 ]. www. vodafonews. com/belgique. html [ 2 ]. Exhibit 13

Malnutrition Among The Elderly Malnutrition - 1681 Words

Malnutrition in the Elderly The general objective of this research paper is to increase awareness about a mostly hidden epidemic among the elderly. Studies show one in every two older people are at risk for malnutrition. (Drewnowski Evans, 2001) Findings also show that hunger among the elderly is an enormous, far-reaching problem found in places across the globe, but the United States seems to be an unlikely place to find starvation where food is plentiful. Consequently, because of ineffective intervention, older adults are slowly starving to death in their homes, as well as independent living situations, nursing homes, and hospitals alike. It seems despite malnutrition being a preventable condition, the prevalence of the problem has†¦show more content†¦(Drewnowski Evans, 2001) By 2025, the number of older adults is projected to reach more than 1.2 billion. 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