Securitization deal for Dima Healthcare. First of a kind deal in the health sector - Lebanon

Securitization deal for Dima Healthcare
First of a kind deal in the health sector
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Bemo Securitisation (BSEC), a financial institution specialized in structured finance and subsidiary of BEMO bank, successfully closed a trade receivables securitisation for Dima Healthcare, a major distributor of medical supplies and equipment, and maintenance services.

The transaction is backed by a diversified portfolio of trade receivables provided by Dima Healthcare to its clients, mainly hospitals, in addition to pharmacies, clinics, corporations and medical doctors.

DHC Healthcare SIF is the first trade receivables securitization carried out in the Lebanese healthcare sector. The Fund consists of the issuance of 4.5 year notes offered and subscribed by institutional investors.

Issuance proceeds are applied to purchase from Dima Healthcare a portfolio of receivables of around $14 million, and the Fund will continuously purchase new receivables for a three-year revolving period.

“The transaction provided our company with a new source of funding to support the continuous growth of our business and the growing demand in the healthcare sector in general,” said Michel Zoghzoghi, CEO of Dima Healthcare.

The deal is structured, arranged and lead-managed by BSEC. The issuance is subscribed by Banque BEMO, Allianz SNA, BBAC, First National Bank, BlomInvest, FFA Private Bank, CreditBank, BIT, and BEMO Europe Banque Privée.

“We believe that the Lebanese market is showing bigger awareness of the benefits of securitization solutions,” said Ronald Yazbeck, CEO of BSEC.

Reported by Leila Rahbani
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Date Posted: Feb 25, 2014