BAB unit closes $360m finace deal for North Africa hospitals
RIYADH, July 2, 2020
Bait Al Batterjee (BAB) Group, the owner and operator of Saudi German Hospitals across the UAE, Yemen and Egypt, said its group company Humania has closed a $360 million debt and equity platform in partnership with the International Finance Corporation (IFC) and a consortium of leading multilateral organizations.
BAB Group is also a majority shareholder in MEAHCO, which owns and manages the hospital group in Saudi Arabia. The partnership will help grow the SGH footprint in Morocco and expand its presence in Egypt.
Humania is planning to build a new hospital in Alexandria and a medical tower in Cairo, Egypt. The project will also include a new high-quality multi-specialty hospital in the new eco city of Zenata, Morocco.
Combined, the platform is expected to have about 1,000 inpatient beds and 300 outpatient clinics, said the statement from BAB Group.
Humania has successfully closed over $100 million equity raise for its North Africa healthcare platform with investments coming from IFC, Danish Sustainable Development Goals Investment Fund K/S managed by the Investment Fund For Developing Countries (IFU) and Société De Promotion Et Participation Pour La Coopération Economique (Proparco) along with Bait Al Batterjee (BAB) group to expand the Saudi German Hospital network in Egypt and Morocco.
Last year in December, Humania had closed Sharia compliant project finance for the same platform with IFC, OPEC Fund for International Development (OFID), Finnish Fund for Industrial Development (Finnfund) and European Bank for Reconstruction and Development (EBRD). This was the first Sharia compliant project finance for all the DFIs (except IFC).
While operating under the renowned Saudi German Hospital brand, Humania North Africa shall aim to provide best-in-class patient care to the region through world-class expertise and cutting-edge technologies.
"Our partnership with IFC will help us make important investments during a time when the demand for quality healthcare keeps rising,” said Sobhi Abduljaleel Batterjee, Humania & BAB Chairman.
“It will allow us to provide affordable, high-quality healthcare, including specialty services to the community in Egypt and Morocco as they contend with the impact of COVID-19,” he added.
Humania Vice Chairman and BAB President Makarem Sobhi Batterjee said: "Today’s closing and signing ceremony marks a new partnership for the BAB Group with leading multilateral development institutions who bring some of the best, yet diverse global practices."
"This complements Saudi German Hospital Group’s thirty years track record of providing international quality healthcare in the Mena region," he noted.
"Our partnership will help redefine the private sector’s contribution to healthcare in these countries by building and operating hospitals in line with best global practice," he added.
Sérgio Pimenta, IFC’s Vice President for the Middle East and Africa, said: "IFC has led both the equity and debt rounds and is also the lead participant, contributing over $100 million to Humania North Africa."
"We are very excited to continue supporting Humania, our long-term partner and client in the healthcare sector," he added.
“Today’s agreement is a testament to the strength of our partnership with IFU and PROPARCO. This project is a good example of how the private sector can be leveraged to expand access to medical care, strengthen human capital, improve social inclusion and spur innovation in the health systems of Egypt and Morocco.”-TradeArabia News Service
