Hirslanden uses record low interest rates to refinance

Press release, 2 August 2012


Although its current loans are not due for repayment until October 2014, the Hirslanden Private Hospital Group, which is part of Mediclinic International, is taking advantage of the favourable conditions on the financial markets to restructure its financing. In doing so, Hirslanden will save approximately CHF 90 million in interest charges a year, which can be used for future amortisation payments.

For Hirslanden, this refinancing means a stable and solid financial situation for the next five years. The average interest rate for the financing of new loans in Switzerland is approximately 2.5 per cent, while the average interest rate for existing loans is 5.6 per cent. The overall savings resulting from this debt refinancing will be approximately CHF 90 million per year, which can be used for future amortisation payments.


With this refinancing, the amount of the loans will drop from the current level of roughly CHF 2.5 billion to slightly more than CHF 2 billion. At the same time, the equity base will be broadened through an increase in capital. This strengthening of the balance sheet by the parent company Mediclinic International is a further commitment to the Hirslanden Private Hospital Group and its location in Switzerland.


Although the existing loans are not due for repayment until October 2014, Hirslanden is taking advantage of the favourable conditions on the financial markets. Commenting on this move, Andreas Kappeler, CFO of the Hirslanden Private Hospital Group, says: “The current unusually attractive situation regarding interest rates was a motivation for us to solidify our overall financing for the next five years. This step takes a considerable burden off our expenses on the financial side. It makes it possible for us to use these savings for the gradual repayment of our debt.”


This round of refinancing was coordinated and managed by Credit Suisse AG. In addition to Credit Suisse AG, the other lead banks participating in the new loan financing include UBS AG, Zürcher Kantonalbank and Barclays Bank plc. Thus, the major portion of the financing is being carried by Swiss financial institutions.

Mediclinic International Limited

Mediclinic International Limited, one of the largest private hospital groups in the world, is a recognised and trusted brand in the private healthcare industry. The JSE-listed group owns and manages approximately
23 % of the Southern African private hospital industry through its network of 52 hospitals throughout South Africa and Namibia and is the largest provider of private healthcare in Switzerland, with the Hirslanden Private Hospital Group, and Emirates Healthcare in the United Arab Emirates. Industrial holding company Remgro holds a 43 % interest in the group.


The core business of Mediclinic International Limited is to provide cost-effective private acute care hospital services to patients. Offering a wide range of specialised services, the group provides its associate medical practitioners with the best possible infrastructure, custom-designed facilities, state-of-the-art equipment and above all, excellent clinical governance.


Dr. Peter Werder
Head of Corporate Communications
Hirslanden Private Hospital Group
Seefeldstrasse 214
CH-8008 Zürich
T +41 44 388 75 85

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