Eco Medical Village Limited, a company seeking to develop a 380-Ward (700 bed) hospital complex for middle and upper class West Africans, recently announced that it executed a $300 million financing term sheet with Milost Global Inc.
The Eco Medical Hospital, which will be located in the Achimota/West-Legon region of Accra, is targeting the user segment of the healthcare industry that typically go to South Africa, North America, Europe, Cuba and India for care. Eco Medical Village is also planning on developing satellite units (spoke hospitals/clinics) in all the countries within the sub-region.
The financing is expected to include $100 million in equity capital and $200 million in debt and proceeds are expected to be used for specific working capital, the development and construction of the hospital. The debt facility will bear interest at an annual rate of 5%, payable quarterly in cash and construction at the site is expected to be launched following the closing of the financing and the filing with the U.S regulators for an initial public offering (IPO).
The Chief Executive Officer of Eco Medical Limited, Peter Ahiekpor said:
“It’s a good day for Ghana and Africa as a whole today. Building a medical facility where the three major languages of ECOWAS will be practiced will not be an easy journey by itself but is worth it. Lots of strategic planning has gone into this project for the last three years and based on the strength of this project, we are very glad to have an institutional investor like Milost to invest in this project that will bring medical care to the average African.”
The financing was arranged and negotiated on behalf of Eco Medical Limited by Palewater Advisory Group In, who Eco Medical Limited retained as an in-house advisor pertaining to the IPO on Nasdaq.
The CEO of Milost Global Inc, Egerton Forster also added:
“This is our first investment in Ghana and we are happy to be part of Eco Medical Village’s growth story, most importantly that we are investing our capital in a company with a great story to tell. We continue to look for great investment in Africa opportunities such as this.”
Milost Global Inc, an American Private Equity firm that is headquartered in New York City and is said to have more than $25 billion in committed capital is a new and unknown investor in the African space. The team also recently announced that it would be forming a subsidiary company in Africa, Milost Bank Africa Limited (a privately held company) to seek buyout opportunities in the Banking industry in Africa with a strong focus in ECOWAS and SADC regions.