Singapore- and New Delhi-based private equity firm Quadria Capital has closed a $200 million revolving credit facility to finance its healthcare investments in South Asia and Southeast Asia.
The healtcare-focused PE firm has utilized $77 million from the facility for its recent investment in Dr. GSK Velu-led Maxivision Eye Hospital, meeting a principal social loan criterion, Quadria said in a statement.
A revolving credit facility is a financial arrangement provided by a lending institution, typically a bank, that offers borrowers a flexible line of credit. Unlike a traditional loan with a fixed repayment schedule, a revolving credit facility allows borrowers to access a certain amount of funds, repay the borrowed amount, and then access those funds again as needed, within an established credit limit and timeframe.
Quadria said the facility is structured so that loans drawn for the purpose of its investments may be eligible to be classified as “social loans” in accordance with the Social Loan Principles published by the Loan Market Association, Asia Pacific Loan Market Association, and Loan Syndications and Trading Association, following a review by ING Bank N.V., the facility’s social coordinator.
Investments are considered eligible as social loans for the facility if they improve access to essential services such as healthcare, support food security and sustainable food systems, and socioeconomic advancement, among other criteria, it said.
By employing these funds, Quadria's portfolio companies will report on pre-approved measures to showcase the social impact of the firm's investment. For instance, indicators for Maxivision include successful coverage for the older population, accessibility and training of healthcare experts, the number of doctors and installed beds, healthcare costs, facility certification, and campaigns to raise awareness of eyecare, Quadria said.
“With this social loan, the first of its kind in Asia, we are bringing to the region financial innovations designed to channel capital into projects that create broad social impact. It demonstrates our ability to avail ourselves of sustainability-linked financing to expand quality and accessible healthcare services across the region while generating attractive returns,” said Abrar Mir, co-founder and Managing Partner at Quadria.
HSBC Singapore and ING’s Singapore branch served as the original lenders for the facility. HSBC Singapore also acted as the facility and security agent. ING acted as the sole social coordinator for the facility.
Quadria’s recent activities
Quadria is raising its third healthcare-focused fund with a hard cap of $1 billion. In March, it secured a new limited partner (LP) after previously attracting a group of returning investors. Quadria concluded the final close of its second fund, surpassing its $400 million target to raise $595 million in 2020.
The PE firm marked its first exit from its India portfolio in 2021 with Strand Life Sciences, selling its stake to Reliance Industries Ltd. It recently clocked another exit through the initial public offering of active pharmaceutical ingredients maker Concord Biotech.
Last year, Quadria exited Medica Synergie as Singapore state investment firm Temasek invested in the hospital chain. Both exits, Strand Life Sciences and Medica Synergie, generated positive returns, although Quadria possibly fell short of benchmark returns.
In February, the PE firm participated in online health platform MediBuddy’s $125-million Series C funding along with Lightrock India.
Launched in 2012, Quadria currently has $3.4 billion in assets under management.
