Malaysia - Integrated Healthcare Said to Market S$650 Million Facility

Integrated Healthcare Holdings Sdn. began marketing a loan of about S$650 million ($521 million) to help finance the acquisition of a Turkey hospital chain, a person familiar with the matter said.

The three-year facility is split into a S$470 million part and a 450 million ringgit ($150 million) portion, the person said, asking not to be identified as the details are private.

Asia’s biggest hospital operator is offering to pay a starting margin of 100 basis points, or 1 percentage point, over the Singapore dollar swap offer rate for the Singapore dollar- denominated loan, the person said. That increases to 150 basis points after 12 months, and 200 after two years, the person said.

Integrated Healthcare, controlled by Khazanah Nasional Bhd., Malaysia’s state investment company, agreed to buy 75 percent of the owner of Turkey’s largest hospital group, Acibadem Saglik Hizmetleri & Ticaret AS (ACIBD), in December.

CIMB Group Holdings Bhd. (CIMB), Bank of America Corp., Credit Suisse Group AG, DBS Group Holdings Ltd., Deutsche Bank AG and Goldman Sachs Group Inc. were hired to arrange a loan to help finance the transaction, another person familiar with the matter said on Dec. 8.

CIMB, which is acting as the loan’s agent bank, will fund the ringgit portion itself, the person said today. That part of the lending initially pays a margin equal to CIMB’s cost of funds plus 60 basis points more than benchmark rates, rising to 110 basis points after the first year and 160 after the second, the person said.

The five other banks arranging the Singapore dollar funding expect to attract another two to four banks in general syndication, a process which should take four to six weeks, the person said.

Katrina Nicholas

Bloomberg

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