MedLife signs syndicated loan worth 143 million Euro to expand at regional level
MedLife Medical System, the leader of the private medical services market in Romania, signs today the increase of the existing facilities by 40 million euros by signing a syndicated loan in the total amount of approximately 143 million euros.
The syndicate of banks which signs the new syndicated loan consists of Banca Comercială Română, as coordinator, mandated lead arranger, documentation agent, facility & security agent and lender, Raiffeisen Bank, BRD Groupe Société Générale and Banca Transilvania, as lead arrangers and lenders.
The new funds will be dedicated to consolidating and expanding the group at national level, through the development of regional hospitals, where the patient will benefit from a 360-degree approach both in terms of the complexity of the medical act and the quality of complementary services. The expansion of the medical infrastructure and the M&A program are also a priority this year, and moreover, the company will continue intensely its research efforts, aiming to intensify them through new investments during this year.
“We have big plans for the coming period and, even if we are very cautious and connected to the way the health crisis evolves, this does not stop us from daring, innovating, and building new roads where others never have thought to go. We will continue the research initiatives initiated since the beginning of last year, approaches that not only gave us an important role in society, but also positioned us as a regional watchdog in monitoring the pandemic. As we have already announced a month ago, we allocated between 3 and 5 million for the arrangement of a new biosafety III laboratory where we will work for the first time with live viruses, the project being quite advanced. The new laboratory will be inaugurated in Bucharest and will become the most modern research laboratory in the area of genetics, virology and molecular biology in Romania. At the same time, we maintain as a priority the M&A program but also the consolidation of the medical infrastructure across the country so that the patient can have swift access to medical services everywhere” said Mihai Marcu, President and CEO of MedLife Group.
“Quality medical services are a top necessity for our society, and private medical services have proven their complementary role during the pandemic. MedLife decision to continue its development plans gives us confidence in a better future for the health sector and also for the Romanian business sector as a whole. BCR is an active supporter of the Romanian business environment and we are glad to support further the development of MedLife group. Hopefully, more entrepreneurs will follow this example, not just from the medical sector. If last year was one of accommodation to the new reality, we believe this year will be dedicated to investments”, said Oana Macoveiciuc, Head of Consumer Products and Services BCR.
According to company representatives, important emphasis will be also placed on the development of programs and projects in a pandemic context, projects related to prevention, oncology and radiotherapy, tech and digitalization, the main objective being the needs of the patient in 2021, that had or not COVID19 infection, who takes care of his health and who wants to solve his needs efficiently, quickly and safely.
MedLife ended 2020 with pro-forma consolidated sales at group level of 251 million euros, up by 25.5% compared to the same period last year, being one of the largest players at regional level. According to the company’s representatives, the figures budgeted for 2021 at consolidated level show 15% increase in sales, as well as a maintenance of current profitability (EBITDA margin) at group level. The budgeted figures do not include the acquisitions announced at the end of 2020, which will be added as the completion procedures are finalised.