The Medicity Super Specialty Tertiary Care Hospital, Gurgaon, promoted by the noted cardiac surgeon Dr Naresh Trehan under Global Health Pvt Ltd, is at the advanced stage of completion and expected to commence operations from October 2009. The total cost of the project is estimated at Rs 932 crore and will be funded at a debt-equity ratio of one is ten. Yes Bank, India's new age private sector Bank, has announced the financial closure of an Rs 500 crore Project Finance for Medicity Hospital.
Yes Bank was appointed as the Sole Underwriter and Mandated Lead Arranger for Rs 500 crore of debt in syndication with four Public Sector banks, viz. Allahabad Bank, Dena Bank, Punjab & Sind Bank and State Bank of Hyderabad. The syndication process was completed within 60 days of its launch.
On successful completion of this significant transaction, Dr Naresh Trehan, chairman and managing director of global health said, "Medicity will be a landmark for the Indian Healthcare Industry and give Indians access to world class super speciality medical treatment in line with internationally accepted standards. The confidence demonstrated by the financial community further to Yes Bank's syndication efforts, re-inforces my vision of creating a truly world class institution providing tertiary care in India."
Speaking at the announcement 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. We are extremely pleased to spearhead one of the largest and finest super specialty tertiary care hospitals in India. Healthcare has always been a cornerstone of growth of India, and this transaction re-iterates our commitment of being a Bank for Future Businesses of India. 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 (CAGR) of 12 per cent to 15 per cent over the next decade.