Mediclinic gets R8.45bn sustainability-linked loan
Hospital group Mediclinic has refinanced its existing debt through a new R8.45-billion sustainability-linked banking facility – the first of its kind arranged by a bank in Africa.
Rand Merchant Bank (RMB), a division of FirstRand Bank, acted as the lead arranger for the transaction.
Mediclinic will benefit from a reduced facility margin through an incentive-based pricing mechanism. The targets are directly linked to key group environmental and social (E&S) goals.
By financially incentivising the achievement of these E&S targets, companies in Africa can now align their business goals with sustainability targets.
“This pioneering development allows RMB to deploy its balance sheet in a way that drives environmental, social and governance outcomes within its broader business universe, delivering sustainable investment and growth in Africa, while also making the continent relevant to a broader global investment universe,” stated RMB head of sustainable finance and ESG advisory Nigel Beck.
RMB aligned the funding to Mediclinic’s ambitious sustainability goals of carbon neutrality and zero waste to landfill by 2030.
Mediclinic set sustainability targets related to reductions in Scope 1 and 2 carbon dioxide emissions and waste diverted from landfill and also included a reduction in water consumption and an improvement in patient experience.
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