RMBarrangesfirstsyndicatedsustainabilitylinkedloaninAfricaforMediclinicSA

 

The challenge

Mediclinic Southern Africa operates a range of multi-disciplinary acute care private hospitals in South Africa and Namibia, and focuses on providing premium healthcare for all its customers. They had a requirement to refinance their existing R6.65bn loan facilities and preference shares of R1.8bn.

RMB solution

The R8.45bn debt package is the first syndicated loan arranged by an African bank, and the largest sustainability linked loan (SLL) done to date in Africa. As sole mandated lead arranger, debt co-ordinator and sustainability agent, RMB’s Sustainable Finance and ESG Advisory and Loan Syndication teams structured the funding package which contains a pricing benefit linked to the attainment of sustainability-linked key performance metrics.

How did this enable the client?

The loan metrics look at Mediclinic’s performance in respect of:

• Reducing its carbon emissions
• Reducing its water consumption
• Diverting waste away from landfill (encouraging reducing, reusing and recycling)
• Improving patient experience

Each of these metrics is aligned to Mediclinic’s ESG strategy and therefore supports them in meeting their specific sustainability goals of reaching carbon neutrality by 2030.

Client	Mediclinic
Size of the Transaction	R8.45bn
Sector	Healthcare and Hospitality
Capabilities	Sustainable Finance and ESG Advisory Loan Syndication
RMB's role	Mandated lead arranger Bookrunner Debt co-ordinator ESG advise Funder
Country	Southern Africa