Norsad Capital, a private credit provider to midmarket growth companies in sub-Saharan Africa, has extended a R100m stretched debt facility to JSE-listed health-care investment vehicle RH Bophelo.
Gaborone-headquartered Norsad, which has 32 years’ experience providing debt and mezzanine finance to companies across Africa, says the facility will comprise a portion of senior debt and a “stretched” component taking the form of a balloon repayment. The balloon component will involve a portion of the capital coming due when the loan matures with interest payable in the interim.
Norsad Capital investment director and transaction lead Zubair Suliman said the R100m facility would be used by RH Bophelo to expand four of its existing hospitals and clinics in which it has invested. RH Bophelo is a black-owned investment firm that listed as a SPAC (special purpose acquisition company) in July 2017 and has since established a portfolio of healthcare-related investments with a focus on low- and middle-income earners.
“Norsad has identified health care as a growth area under our focus sector theme of soft and social infrastructure,” said Suliman. “With this structured funding, Norsad will play a catalytic role in unlocking access to health-care services for previously underserved communities and furthermore support a customer-focused group intent on promoting transparency, competition and providing better value for their patients.”
RH Bophelo has a network of hospitals and clinics across SA as well as a hospital consulting, commissioning and management subsidiary engaged in third-party facilities management across eight provinces. The group’s investment sphere extends to pharmacies and emergency services and healthcare-related insurance products with the primary target the underserved market in SA.
“As a growth-orientated firm, speed and flexibility in execution is of paramount importance to us and Norsad is the ideal counterparty,” said Quinton Zunga, CEO of RH Bophelo.
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