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Wednesday, February 21, 2024

Launch Partners

Case study: Humania Group’s US$125 million hospital projects facility

Humania Group secured a US$125 million syndicated Islamic facility to develop two greenfield healthcare projects in North Africa. Utilized at the height of the COVID-19 pandemic in 2020, the facility saw the participation of multiple institutions across several regions.

Under the Hunamia Group, Al Batterjia Medical SAE, incorporated in Egypt, and Batterjia Medical SARLAU, incorporated in Morocco, were the co-borrowers for the facility. The entities correspond to the Alexandria Project, a 208-bed tertiary care hospital and the Casablanca Project, a 150-bed hospital facility.

The facility was led by the International Finance Corporation (IFC), which provided US$35 million in financing, and involved a Saudi Arabian sponsor as well as Egyptian and Moroccan affiliates. Among its financiers, the OPEC Fund for International Development contributed US$25 million of the total financing package.

The assistant director-general of the OPEC Fund for International Development, Tareq Alnassar, noted that its participation in the financing is part of its efforts toward the achievement of SDG 3 Good Health and Well-being.

“Our partnership with [the] IFC will allow us to provide world-class healthcare to more patients in Egypt and Morocco, and thus play a role in improving the healthcare systems and well-being of the communities in these countries,” Sobhi Batterjee, the chairman of Humania Group, commented.

According to Sergio Pimenta, the vice-president for the Middle East and Africa at the IFC, this financing is part of the IFC’s effort to expand the role of private medical providers in the MENA region.

Governments will not be able to meet the funding needs of the healthcare sector. This is where the private sector can step in, Sergio opined.

The First Abu Dhabi Bank acted as the commodity agent, facilitating the commodity Murabahah, with its internal Shariah supervisory committee acting as the Shariah advisor for the transaction.

“In relation to the transaction itself, the Clifford Chance team guided each of the financiers through the intricacies of the Islamic financing structure, particularly as some of the financiers were undertaking their first Islamic financing,” a spokesperson from Clifford Chance, the legal counsel for the arrangers, shared.

This involved advising on legal risks, compliance issues as well as the practical issues of implementing an Islamic financing transaction, the spokesperson shared.

Humania Group Hospital Financing

US$125 million


23rd December 2019
Summary of terms and conditions
Aggragate principal amount
US$125 million
Type of facility
Islamic syndicated facility
Structure
Commodity Murabahah
Use of proceeds
To fund the construction, completion, ownership and operation in respect of (i) a tertiary care hospital in Alexandria, Egypt and hospital in Casablanca, Morocco (the Casablanca Project)
Financier(s)
– International Finance Corporation
– European Bank for Reconstruction and Development
– Finnish Fund for Industrial Cooperation
– OPEC Fund for International Development
Profit rate/ yield
Undisclosed
Guarantor(s)
– Humania North Africa Holding
– Humania Egypt Holding
– Humania Morocco Holding
– Egyptian Saudi Healthcare Company
– Bait Al Batterjee Medical Company
Arranger
International Finance Corporation
Legal counsel for arranger
– Clifford Chance for English, Dubai International Financial Centre and Moroccan law
– Abuhimed Alsheukh Alhagbani Law Firm in cooperation with Clifford Chance for Saudi law
– Sharkawy and Sarhan for Egyptian Law
Shariah advisor
The internal Shariah supervision committee of First Abu Dhabi Bank
Facility agent
First Abu Dhabi Bank

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