YES Bank has announced the financial closure of Rs 500 crore project finance for Medanta?the Medicity Super specialty Tertiary Care Hospital promoted by Naresh Trehan.
YES Bank was appointed as sole underwriter and mandated lead arranger for raising debt for Medanta. The other members that participated in this syndication for funding Medanta were Allahabad Bank, Dena Bank, Punjab & Sind Bank and State Bank of Hyderabad. The syndication process was completed within 60 days of its launch. The project envisages construction of a 1,250 bed facility in Gurgaon at a total cost of Rs 932 crore to be funded at a debt – equity ratio of 1.10x. The hospital is at an advanced stage of completion, expected to commence operations from October 1, 2009.
Rana Kapoor, founder, managing director & CEO, YES Bank, said, ?YES Bank has evolved from an established provider of debt capital to a facilitator and arranger of capital raising and has assisted clients in obtaining superior financial returns in a risk-mitigated, well structured manner. This exceptional project financing further demonstrates our knowledge driven approach with a concerted focus on the Healthcare and Life sciences sector, and we are fully committed to partner healthcare providers to facilitate the growth and development of this key sector.?
The value of the current Indian healthcare market is about Rs 1, 50,000 crore, and is expected to grow at a compound annual growth rate of 12-15% over the next decade. Indian healthcare market is expected to contribute 8% to the GDP and generate employment opportunities for nine million people by 2012. Private healthcare is expected to garner approximately 60% of the estimated Rs 2,50,000 crore healthcare market by 2012.