IFC proposes investment in South African private hospital operator

The IFC has disclosed a proposed equity investment of up to $28 million to support South African hospital operator Lenmed’s expansion plans. IFC’s investment will be alongside an up to $23 million equity investment to be mobilised from another development finance institution.

Lenmed is the fourth largest private hospital operator in South Africa, operating a network of 17 hospitals and 2,200 operational beds across South Africa, Botswana, Mozambique and Ghana. Lenmed’s largest shareholder is Lenvestco Investments, a vehicle which represents the interests of the Devchand family and associates.

Lenmed seeks to raise both debt and equity financing to fund the expansion of its hospital portfolio to almost 3,000 beds over the next four to five years, through organic growth and acquisitions within South Africa and the sub-Saharan Africa region.