3 banks arrange P5-B loan for Ospital ng Makati
By LEE C. CHIPONGIAN
Two government banks and a private bank have arranged a P5-billion syndicated loan facility to Life Nurture Inc. (LNI), the developer of the Makati Life Medical Center.
In a statement, LNI said it has signed an omnibus loan and security agreement on Feb. 16 with the Development Bank of the Philippines which is extending P2.5 billion; Land Bank of the Philippines with P2 billion; and Aboitiz-led Union Bank of the Philippines which will finance P500 million of the private-public partnership project (PPP).
The loan will fund the completion of Ospital ng Makati Building 2 (OsMak 2) which will be renamed Makati Life Medical Center.
About P3.5 billion of the P5 billion syndicated loan is payable in 10 years inclusive of two years grace period for principal repayment. Another P1.2 billion is payable in seven years while P300 million will be used as working capital.
The loan facility was finalized after LNI signed a joint venture agreement with the city government of Makati to pursue OsMak 2’s redevelopment under the PPP arrangement in April last year, after complying with the city’s PPP Code and competitive Swiss challenge, according to the statement.
“We will strive to build and operate a hospital that will remain true to the principle of sustainable delivery of innovative and inclusive healthcare solutions. Makati Life is going to be a holistic healthcare facility,” said Dr. Dennis Sta. Ana, President of LNI.
The proposed hospital will have a capacity of 360 beds and 192 doctors’ clinics.
Sta. Ana said Makati Life, which will be fully equipped for medical prevention, treatment and rehabilitation services, will have a Level 2 hospital category, similar to Makati Medical Center and St. Luke’s Bonifacio Global City.
“For a business district as densely populated as Makati, with over 600,000 residents and about five million daytime population, there are currently only two major hospitals. There is definitely room for one more and Makati Life is designed to stay relevant and future-ready,” said Sta. Ana.
LNI Chairman Engr. William Scheirman said they plan to build more hospitals in the future. He said LNI could be “a trailblazer in hospital PPPs” with Makati Life as the flagship project.
“We hope to tweak and replicate the model in other cities and municipalities across the nation. We believe that hospital PPPs are timely and necessary for inclusive progress in our country’s healthcare sector,” said Scheirman.
Makati Life will open partial commercial operations within the first half of 2022 and is expected to start in-patient services with the first 100 beds by the end of this year.
The second phase, including the launch of the Cardiac Center and operationalization of 200 beds, is targeted by the first half of 2023, while full completion with the cancer and wellness centers is scheduled in early 2024, according to the statement.
Sta. Ana and Makati Life Chairman Dr. Andrew Prieto led key hospital executives in signing the loan agreement with the three banks.
“Makati Life will be an inclusive hospital. It will expand Makati City’s platform for delivering social healthcare through the Yellow Card program. In partnership with the city government of Makati, we will provide the required level of treatment and care even to patients who can’t afford it, giving everyone a chance to attain better quality of life,” said Sta. Ana.
Makati Mayor Abby Binay witnessed the agreement signing last Wednesday. Aside from Sta. Ana and Scheirman, Dr. Randy Talamayan is also co-founder of LNI.