KPMG supports Nuffield Health through refinancing deal

KPMG’s debt advisory team has helped complete a refinancing deal for Nuffield Health. The new package will provide the charity with the stability needed to continue delivering nutritional support to millions of people across Britain.  

As the UK’s largest healthcare charity, in 2021 Nuffield Health helped more than 1.2 million people to live healthier lives through. The charity operates via a network of 37 hospitals, 114 fitness and wellbeing centres, medical centres and workplace wellbeing facilities. It also offers a range of free-to-access community programmes, such as our award-winning programme to help an ever-growing number of people who are finding it difficult to recover from the long-term effects of Covid-19.

However, to maintain this network, Nuffield Health needs a solid financial base. With charities across the UK to meet with demand while the legacies of austerity and decreasing consumer spending power mean they are short on donations, Nuffield Health sought to refinance its operations, and stabilise its platform.

Leveraging the charity’s strong property portfolio, the five-year refinancing package uses a mix of bank facilities and property financing on 10 hospital sites. At the same time, it forms part of a new environmental, social responsibility and governance (ESG) strategy, alongside an aim to further reduce carbon emissions with a goal to be carbon net zero by 2040.

If targets relating to our gender pay gap, carbon emissions and social return on investment are met, the organisation will qualify for a sustainability-linked rebate on the interest rate paid on its bank facilities. Each of these targets will be monitored by independent third-party organisations.

Nuffield Health’s Chief Financial Officer, Jenny Dillon, said, “We would like to thank all of our partners for their support in completing this refinancing package. At a time of economic uncertainty, the arrangements announced today demonstrate our lenders’ confidence in Nuffield Health and our future ambitions. Sustainability is a core part of our purpose to build a healthier nation, so we’re pleased to have agreed new environmental, social responsibility and governance targets with responsible lenders within these arrangements.”

Global bank HSBC supported Nuffield Health to define those sustainability targets, which are now linked to bank facilities with four leading lenders: NatWest, HSBC, Barclays and Santander. Song Capital in partnership with Alpha Real Capital also provided a long-term property financing arrangement for the ten hospitals.

Nuffield Health appointed KPMG to support on debt advisory. A team from the Big Four professional services firm advised on the refinancing package.

Simon Mower, Debt Advisory Director at KPMG, commented, “We’re delighted to have advised Nuffield Health on their new financing package, which gives them a strong platform from which to deliver their charitable objectives. Their purpose is centred around building a healthier nation, with a clear focus on ESG, and this long-term financing enables the team to deliver on their strategy.”