Clyde & Co has advised the Zulekha Hospitals Group on obtaining a USD 24 million convertible loan facility from the IFC (a member of the World Bank Group), and on a major restructuring of the Group's affairs in the Middle East and the Indian subcontinent region.
Zulekha Hospitals is a family-owned health care group based in the UAE. The Group currently employs over 1,000 staff and treats over 550,000 patients per year, and plans to utilize the funding provided by the IFC to facilitate its expansion plans in India and to effect energy-related improvements to existing facilities in the UAE. The transaction constitutes the first institutional investment into the Zulekha Group.
The team from Clyde & Co advising Zulekha was led by Dubai based corporate partner, Abhi Jalan. Abhi was assisted by a team of corporate and finance associates including Mark Hiess, Prarthna Chaddha and Munisha Khatwani. Clyde & Co's associate firm in India, ALMT Legal, advised on Indian regulatory aspects related to the transaction with the team including partners Statira Ranina and Ryna Karani, and associate Subashini R.
Commenting on the transaction, Abhi Jalan said "This transaction has demonstrated the value addition offered by Clyde & Co through its ability to advise on English and UAE law and, together with our associate office in Mumbai, on Indian law. We are delighted to have had the opportunity to assist the Zulekha Group on a transaction that is of particular significance to the Group's future and will ultimately bring quality and affordable healthcare services to India."
The Group is proposing to use USD 21 million of IFC’s USD 24 million financing package to build a new 189-bed hospital in Nagpur in the Indian state of Maharashtra where access to healthcare is low and patients often need to travel several hundred miles for quality medical treatment.
The remaining USD 3 million will pay for energy efficiency-related expenditure at Zulekha Hospitals Group's Sharjah facility in the United Arab Emirates. IFC expects to share its knowledge of clean production initiatives to generate cost savings and encourage other companies to adopt greener technologies.