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Afya (Nasdaq: AFYA; B3: A2FY34), Brazil’s leading medical education and practice solutions provider, has received the full R$500 million disbursement from the International Finance (IFC). This loan, IFC’s first sustainability-linked loan in the education sector based on social targets, will support Afya’s expansion program. The loan’s pricing is tied to Afya’s performance in social key performance indicators, including free medical consultations and education quality metrics.
The loan terms include repayment in seven semi-annual installments starting April 2027, with an interest rate of Brazilian CDI plus 1.2%. Notably, the rate may be reduced by 15 basis points if Afya achieves the specified sustainability KPIs, incentivizing the company’s commitment to social impact alongside its business growth.
Afya (Nasdaq: AFYA; B3: A2FY34), il principale fornitore di soluzioni per l’educazione medica e la pratica in Brasile, ha ricevuto il pieno finanziamento di R$500 milioni dall’International Finance Corporation (IFC). Questo prestito, il primo prestito legato alla sostenibilità dell’IFC nel settore dell’istruzione basato su obiettivi sociali, supporterà il programma di espansione di Afya. La tariffa del prestito è collegata alla performance di Afya in merito ai fattori chiave di prestazione sociale, inclusi consulti medici gratuiti e metriche di qualità dell’istruzione.
I termini del prestito prevedono il rimborso in sette rate semestrali a partire da aprile 2027, con un tasso d’interesse pari al CDI brasiliano più 1.2%. È importante notare che il tasso potrebbe essere ridotto di 15 punti base se Afya raggiunge i KPI di sostenibilità specificati, incentivando così l’impegno dell’azienda verso l’impatto sociale insieme alla crescita del business.
Afya (Nasdaq: AFYA; B3: A2FY34), el principal proveedor de soluciones de educación médica y prácticas en Brasil, ha recibido el desembolso completo de R$500 millones por parte de la Corporación Financiera Internacional (IFC). Este préstamo, el primer préstamo vinculado a la sostenibilidad de la IFC en el sector educativo basado en objetivos sociales, apoyará el programa de expansión de Afya. El precio del préstamo está vinculado al rendimiento de Afya en indicadores clave de desempeño social, incluidos consultas médicas gratuitas y métricas de calidad educativa.
Las condiciones del préstamo incluyen el reembolso en siete cuotas semestrales a partir de abril de 2027, con una tasa de interés del CDI brasileño más 1.2%. Notablemente, la tasa puede reducirse en 15 puntos básicos si Afya logra los KPIs de sostenibilidad especificados, incentivando el compromiso de la empresa con el impacto social junto con su crecimiento empresarial.
Afya (Nasdaq: AFYA; B3: A2FY34), 브라질의 주요 의료 교육 및 실습 솔루션 제공업체가 5억 헤알의 전액을 국제 금융 공사 (IFC)로부터 수령했다. 이 대출은 사회적 목표에 기반한 교육 부문에서 IFC의 첫 번째 지속 가능성 연결 대출로, Afya의 확장 프로그램을 지원할 것이다. 이 대출의 가격은 Afya의 사회적 주요 성과 지표에 대한 성과와 연결되어 있으며, 여기에는 무료 의료 상담 및 교육 품질 지표가 포함된다.
대출 조건은 2027년 4월부터 시작하여 7회 반기 할부로 상환하며, 이자율은 브라질 CDI 플러스 1.2%이다. 특히 Afya가 지정된 지속 가능성 KPI를 달성하면 금리가 15베이시스 포인트 인하될 수 있어, 기업의 성장을 함께 추구하는 사회적 영향을 위한 회사의 공약을 장려한다.
Afya (Nasdaq: AFYA; B3: A2FY34), le principal fournisseur de solutions en matière d’éducation et de pratique médicale au Brésil, a reçu l’intégralité du financement de 500 millions de R$ de la Corporation Financière Internationale (IFC). Ce prêt, le premier prêt lié à la durabilité de l’IFC dans le secteur de l’éducation basé sur des objectifs sociaux, soutiendra le programme d’expansion d’Afya. Le tarif du prêt est lié à la performance d’Afya dans les indicateurs clés de performance sociale, y compris les consultations médicales gratuites et les métriques de qualité éducative.
Les conditions du prêt incluent un remboursement en sept versements semestriels à partir d’avril 2027, avec un taux d’intérêt du CDI brésilien plus 1,2%. Notamment, le taux peut être réduit de 15 points de base si Afya atteint les KPI de durabilité spécifiés, encourageant ainsi l’engagement de l’entreprise envers l’impact social parallèlement à sa croissance commerciale.
Afya (Nasdaq: AFYA; B3: A2FY34), der führende Anbieter von medizinischer Bildung und Praxislösungen in Brasilien, hat die vollständige R$500 Millionen Auszahlung von der International Finance Corporation (IFC) erhalten. Dieses Darlehen, das erste nachhaltigkeitsgebundene Darlehen der IFC im Bildungssektor, das auf sozialen Zielen basiert, wird Afya’s Expansionsprogramm unterstützen. Der Preis des Darlehens ist an Afya’s Leistung in sozialen Leistungskennzahlen gebunden, einschließlich kostenloser medizinischer Konsultationen und Qualitätsmetriken der Bildung.
Die Darlehensbedingungen umfassen die Rückzahlung in sieben halbjährlichen Raten, beginnend im April 2027, mit einem Zinssatz von brasilianischem CDI plus 1,2%. Bemerkenswert ist, dass der Zinssatz um 15 Basispunkte gesenkt werden kann, wenn Afya die festgelegten Nachhaltigkeits-KPIs erreicht, was das Engagement des Unternehmens für sozialen Einfluss neben seinem Geschäftswachstum fördert.
Positive
- Secured R$500 million in funding to support expansion
- Potential interest rate reduction of 15 bps if sustainability targets are met
- Long-term repayment schedule starting in 2027, providing financial flexibility
Negative
- Additional debt on the balance sheet
- Interest expense will increase, potentially impacting profitability
The R$500 million loan from IFC marks a significant financial milestone for Afya, bolstering its expansion plans in Brazil’s medical education and practice solutions sector. This sustainability-linked loan is particularly noteworthy, as it’s IFC’s first in the education sector tied to social targets. The loan’s structure, with repayment starting in April 2027 and an interest rate of CDI + 1.2% (potentially reduced by 15 bps), provides Afya with favorable terms and financial flexibility.
The potential interest rate reduction linked to sustainability KPIs aligns financial and social goals, potentially leading to cost savings while promoting community health and education quality. This innovative financing approach could enhance Afya’s reputation and attract socially conscious investors. However, investors should monitor Afya’s ability to meet these KPIs and effectively utilize this capital for sustainable growth in the competitive Brazilian healthcare education market.
This loan represents a pioneering move in education financing, linking financial terms to social impact. The focus on free medical consultations and education quality as per Brazil’s Ministry of Education criteria is particularly significant. It demonstrates a shift towards outcome-based financing in education, potentially setting a precedent for future investments in the sector.
For Afya, this agreement presents both opportunities and challenges. While it incentivizes the company to improve its social impact, meeting these KPIs may require substantial operational changes. The success of this model could influence future education policies and financing strategies in Brazil and beyond, potentially leading to more socially responsible practices in private education. Investors should closely watch how Afya balances profit-driven expansion with these social commitments.
This deal positions Afya strategically in Brazil’s growing medical education market. The R$500 million injection provides significant firepower for expansion, potentially allowing Afya to consolidate its market leadership. The sustainability link adds a unique selling proposition, differentiating Afya from competitors and aligning with growing investor interest in ESG-focused companies.
However, the Brazilian market presents challenges, including regulatory changes and economic fluctuations. The loan’s seven-year repayment structure suggests a long-term growth strategy, which could be affected by market dynamics. Investors should consider how Afya’s expansion plans align with projected market growth and demand for medical professionals in Brazil. The company’s ability to leverage this financing for sustainable growth while meeting social targets will be important for long-term success in this competitive sector.
NOVA LIMA, Brazil–(BUSINESS WIRE)– Afya Limited (Nasdaq: AFYA; B3: A2FY34) (“Afya” or the “Company”), the leading medical education group and medical practice solutions provider in Brazil announced today that its wholly-owned subsidiary, Afya Participações S.A., has received the total disbursement of BRL500.0 million under the loan agreement with International Finance Corporation (“IFC”) to support the Company’s expansion program.
The financing is IFC’s first sustainability-linked loan based on social targets in the education sector. The pricing of IFC’s loan will be linked to Afya reaching performance target levels in selected social key performance indicators encompassing free medical consultations for the community and quality of education according to Brazil’s Ministry of Education criteria (“Sustainability KPIs”).
According to the financing terms, the loan shall be repaid in seven equal semi-annual installments starting in April 2027. The interest rate is the Brazilian CDI rate plus 1.2%, and it may be reduced by 15 bps if the Sustainability KPIs are achieved.
For more information, please visit https://ir.afya.com.br.
About Afya Limited (Nasdaq: AFYA, B3: A2FY34)
Afya is a leading medical education group in Brazil based on the number of medical school seats, delivering an end-to-end physician-centric ecosystem that serves and empowers students and physicians to transform their ambitions into rewarding lifelong experiences from the moment they join us as medical students through their medical residency preparation, graduation program, continuing medical education activities and offering medical practice solutions to help doctors enhance their healthcare services through their whole career.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240830164123/en/
Investor Relations Contact:
Afya Limited
Source: Afya Limited
FAQ
What is the total amount of the loan Afya received from IFC?
Afya received a total disbursement of R$500 million (Brazilian Reais) from the International Finance (IFC).
What are the repayment terms for Afya’s loan from IFC?
The loan is to be repaid in seven equal semi-annual installments starting in April 2027.
What is the interest rate on Afya’s loan from IFC?
The interest rate is the Brazilian CDI rate plus 1.2%, with a potential reduction of 15 basis points if sustainability KPIs are achieved.
What makes Afya’s loan from IFC unique in the education sector?
It is IFC’s first sustainability-linked loan based on social targets in the education sector, with pricing linked to performance in social key performance indicators.
