⌛ Did you miss ProPicks’ 13% gains in May? Subscribe now & catch June’s top AI-picked stocks early.Unlock Stocks

Hospital operator Mediclinic gets Africa's first sustainability-linked loan

Published 09/21/2021, 05:30 AM
Updated 09/21/2021, 05:36 AM
© Reuters. FILE PHOTO: The Mediclinic logo is seen in Dubai, UAE February 28, 2017.   REUTERS/Ahmed Jadallah/File Photo
USD/CNH
-

JOHANNESBURG (Reuters) - South Africa's Mediclinic has refinanced 8.45 billion rand ($575.26 million) in loans through Rand Merchant Bank, the hospital operator said on Tuesday, in what the bank described as Africa's first sustainability-linked banking facility.

Investors and environmentalists have been critical of South African banks for not doing enough to meet sustainability targets and being easy on funding to fossil fuel based projects.

Under pressure, the top four banks in the country have taken measures such as reducing funding for coal and increasing exposure to renewable and environmentally sustainable projects.

"By achieving pre-agreed sustainability performance targets, Mediclinic Southern Africa will benefit from a reduced facility margin through an incentive-based pricing mechanism," the country's third biggest hospital chain operator said.

The targets are directly linked to key group environmental and social goals of progressing to becoming carbon neutral with zero waste to landfill by 2030, it said.

RMB, a division of FirstRand Ltd, said the loan was Africa' first syndicated sustainability-linked loan arranged by a bank in Africa.

South Africa's FirstRand, among the country's top banks, said last week that it will end funding for new coal-fired power stations and coal mines as part of its initiative to reach net-zero emissions by 2050.

It is among the two top banks out of four in the country to have explicitly announced a halt to fossil fuel-based funding.

© Reuters. FILE PHOTO: The Mediclinic logo is seen in Dubai, UAE February 28, 2017.   REUTERS/Ahmed Jadallah/File Photo

Nedbank Group had said in April it would stop funding new thermal coal mines by 2025 as it plans to phase out fossil fuel exposure over the next 24 years.

($1 = 14.6889 rand)

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.