New sustainability-linked banking facility is first of its kind in Africa, says Jurgens Myburgh
The CFO explains that the successful refinance of Mediclinic’s debt is in line with its group financial strategy.
Mediclinic’s Southern Africa division has successfully completed the refinancing of existing debt through a new sustainability-linked banking facility.
“The timely and successful refinance of our debt facilities in Southern Africa is in line with our group financial strategy and approach to responsible leverage,” says group CFO Jurgens Myburgh. “We are appreciative of the ongoing support from our Southern African funding partners and their role in this syndicated sustainability-linked loan, the first of its kind arranged by a bank in Africa.”
The new facility comprises R7,950 million senior secured debt and a R500 million revolving credit facility, replacing the previous facilities.
“In our commitment to ensure that every day we improve sustainability by managing our resources responsibly and efficiently to the benefit of our stakeholders and the environment, this innovative mechanism allows us to align our group financial and sustainability goals,” Jurgens says.
He adds that by achieving these sustainability performance targets, Mediclinic South Africa will benefit from a reduced facility margin through an incentive-based pricing mechanism. “The targets are directly linked to the group’s key environmental and social goals of progressing to becoming carbon neutral with zero waste to landfill by 2030 and improving water efficiency and patient experience.”