$ 617 m IDB funding for new projects

Updated 05 April 2013
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$ 617 m IDB funding for new projects

At the 289th meeting of its board of executive directors convened beginning of the week, the Islamic Development Bank (IDB) approved $ 617 million toward funding development projects, which included important projects in the areas of education ($ 174 million for Indonesia), electricity ($ 319.6 million for Iran, Uganda and Bangladesh), agriculture ($ 80 million for Morocco), sanitation ($ 15 million in Maldives) and health ($ 10 million for Mozambique).
The board members concurred to raise IDB’s participation in the capital of the Istanbul-based Kuwait Turkish Participation Bank Inc. by nearly $ 18 million to stand at $ 65 million. The approvals also included $ 750,000 as grants under IDB’s Waqf Fund for educational projects for four Muslim communities in non-member countries namely in Botswana, Nepal, Thailand and Fiji. The board took note of technical assistance grants of $ 450,000 approved by the president to Afghanistan for the education sector and to ASEAN (which includes three IDB member countries — Brunei Darussalam, Indonesia and Malaysia — in its membership) for the fishing sector.
Bearing in mind the success of IDB’s medium term note program and the rising financing needs in its member countries, the board agreed to raise the size of IDB’s sukuk program from $ 6.5 billion to $ 10 billion.
IDB’s cumulative sukuk issuance since August 2003 is expected to reach $ 7 billion by the end of November 2013. The meeting also reviewed the ongoing arrangements for the 38th annual meeting of IDB board of governors, at the level of ministers of finance, economy and planning of the 56-member countries, slated for May 21-22 in Dushanbe, Tajikistan.


NMC Health’s $450 million bond to boost Saudi expansion

Updated 23 April 2018
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NMC Health’s $450 million bond to boost Saudi expansion

  • The new capital structure — which will feature a mixture of unsecured bank and bond financing — will aid the company’s continued growth into Saudi Arabia.
  • The company first secured a foothold in the Kingdom in 2016 after acquiring a 70 percent stake in As Salama Hospital in Al-Khobar.

LONDON: The UAE-based private health care operator NMC Health has launched a $450 million senior unsecured guaranteed bond to help pay off an existing $1 billion bridge facility and support its expansion plans into Saudi Arabia.

The earlier bridging loan was part of the $2 billion capital structure refinancing put in place at the start of the year, the company said.

The bond is due in 2025 and is convertible into ordinary shares. JP Morgan is the sole bookrunner on the issuance. Bonds will have a fixed coupon rate of 1.875 percent, paid semi-annually.

The new capital structure — which will feature a mixture of unsecured bank and bond financing — will aid the company’s continued growth into Saudi Arabia, with NMC having been one of the first private health care providers to capitalize on the Saudi government’s health care privatization plans.

The company first secured a foothold in the Kingdom in 2016 after acquiring a 70 percent stake in As Salama Hospital in Al-Khobar.

Since then, NMC won regulatory approval last September for a new long-term care facility, the Chronic Care Specialty Medical Center, in Jeddah. It is though to be the first greenfield medical facility in the Kingdom to be set up by a non-Saudi company.

Earlier this year, NMC said it acquired an 80 percent stake in the Riyadh-based Al-Salam Medical Group.

NMC’s acquisition-led expansion strategy aims to ensure the company retains its recently-won place on London’s FTSE 100 index. It was one of the first Middle Eastern companies to join the index when it qualified last September. It first listed on the London Stock Exchange in 2012.

The company posted strong growth in the last year, reporting $209.3 million in net profit for 2017, an increase of 38.2 percent on the previous year. The company paid out a total of $641 million in acquisitions last year.

“2017 proved to be a year of tremendous achievements for NMC,” said the firm’s chief executive Prasanth Manghat, in a statement in March.

NMC also secured secured its first public ratings of BB+ with a stable outlook from S&P on April 20, while Moody’s gave the firm rating of Ba1 with a stable outlook on April 20, 2018. The bonds are not expected to be rated.

“The company continues to strive to meet self-imposed standards that are higher when compared to what is expected of it by various regulators. This approach supports in turn its resilient business model, loyal customer base, strong brand recognition and market leading position,” according to a statement from Moody’s Investors Service.

Investors are so far reacting favorably to NMC’s strategy, with the company closing at a record high on April 20, according to Bloomberg reports, with a market value of $10.8 billion.

The company is now one of 24 equities in the region to have achieved a market capitalization of more than $10 billion, the report said.

Healthcare is seen as a lucrative sector in the Gulf due to its relatively wealthy population becoming increasingly at risk of problems related to obesity and diseases such as type 2 diabetes.