Ramsay Santé topped up the first Sustainability-Linked collateral trust

Ramsay Santé topped up its collateral trust, making it one of the largest on the French market (€366.2m in cumulative contracted loan) and the first to be linked to sustainability criteria. This innovative transaction is a new milestone in the sustainable finance’s commitment of Ramsay Santé that renegotiated its syndicated Sustainability-Linked debt in April 2021 with a TLB and issued a Sustainability-Linked Euro PP in December 2021.

Immobilière de Santé, the main holding company for the securities and real estate assets of Ramsay Santé, has concluded an additional loan agreement (Tranche 3) for €150mn from a pool of lenders made up of various entities of Groupe BPCE, La Banque Postale, and Bpifrance. The long-term financing is intended to fund the general needs of Immobilière de Santé and Ramsay Santé, and is backed by a trust holding the shares of the real estate subsidiaries that hold the title to nine private hospitals and clinics, with Natixis CIB as trustee.

This collateral trust that was also topped up by €98 in June 2021 is the first on the market to be sustainability-linked: its interest rate is linked to a bonus/penalty system that depends on the degree to which the buildings concerned reach annual greenhouse-gas reduction emission targets (scope 1 & 2) over the duration of the financing.

The transaction was arranged by Natixis CIB who acted as well as Sustainability coordinator.