Global development finance institution the International Finance Corporation (IFC) will provide a R200-million local currency senior loan to African healthcare provider Lenmed to expand its healthcare services over the next four years.
Lenmed will expand its services through the acquisition of new facilities, the purchase of medical equipment and by hiring and training additional medical staff. It will also expand the number of beds in its hospital portfolio from 2 318 to almost 3 000.
The partnership is aimed at increasing access to quality healthcare, especially in underserved communities, in Botswana, Ghana, Mozambique and South Africa.
The IFC loan is part of a larger, syndicated loan package with three other South African lenders, namely Rand Merchant Bank, Ashburton Asset Managers and Absa Bank, totalling R2.5-billion.
The combined financing will also support Lenmed’s plans to expand into more African countries and help meet the company’s refinancing and working capital requirements.
The IFC will also help Lenmed improve its environmental and social standards and ensure sustainability across its operations, the IFC said.
“Our investment in Lenmed will increase access to quality healthcare in South Africa and in other African countries, enabling more people to access the services they need.
“The IFC complements public healthcare efforts by leveraging private sector funding and expertise to increase access and meet growing demand for services,” said IFC Southern Africa regional director Cláudia Conceição.
“This significant debt package with the IFC and our other funding partners underscores the confidence in Lenmed and the work that we do. This additional capital will help us to continue driving our ambitious growth strategy while fulfilling our core purpose of creating healthier and more prosperous communities across Africa,” said Lenmed CEO Amil Devchand.
Lenmed caters for multiple income groups across all its markets. It provides acute healthcare services, including, but not limited to, trauma care, cardiac services, paediatric care, maternal care, acute and emergency care, cancer treatment, orthopaedics and neurosurgery.