IFC and Lenmed Hospital Group (Lenmed) today announced a partnership to increase access to quality healthcare, especially in underserved communities, in South Africa, Botswana, Ghana, and Mozambique.
Under the partnership, IFC will provide a local currency, R200 million senior loan to Lenmed to help the company expand its healthcare services over the next four years through the acquisition of new facilities, the purchase of medical equipment, and by hiring and training additional medical staff. Lenmed will also expand the number of beds in its hospital portfolio from 2,318 to almost 3,000.
IFC's loan is part of a larger, syndicated loan package with three other South African lenders—Rand Merchant Bank, Ashburton Asset Managers, and ABSA Bank—totaling R2.5 billion. The combined financing will also support Lenmed's plans to expand into other African countries and help meet the company's refinancing and working capital requirements.
In addition to financing, IFC will also help Lenmed improve its environmental and social standards and ensure sustainability across its operations.
"We are extremely excited to have concluded this significant debt package with IFC and our other funding partners, which underscores the confidence in both our Group and the work that we do. This additional capital will allow us to continue driving towards achieving our ambitious growth strategy while, at the same time, fulfilling our core purpose of creating healthier and more prosperous communities across the African continent," said Amil Devchand, Lenmed's Chief Executive Officer.
"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," said Cláudia Conceição, IFC's Regional Director for Southern Africa. "IFC complements public healthcare efforts by leveraging private sector funding and expertise to increase access and meet growing demand for services."
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.