Investor Presentaiton
OUR VALUE CREATION | Financial capital
Indebtedness
On December 31, 2021, Rede D'Or
São Luiz's gross debt stood at R$25.2
billion, up by 18.8% compared to 2020.
This indebtedness increase throughout
the year was mainly due to the purpose
of improving the company's debt
profile and expand its maturity term.
By the end of the year, almost 75.8% of
Rede D'Or São Luiz's gross debt was
denominated in Brazilian Reais, while
the remaining amount was fully hedged
against foreign exchange variations via
hedge and derivative operations. The
average cost of debt by the end of the
year was equal to CDI + 0.7%, with an
average term of 5.9 years.
Considering the strong cash position
of R$12.6 billion on December 31,
2021, Rede D'Or São Luiz's net debt
was R$12.7 billion at the end of the
year. Lastly, 31.6% of net debt was
pegged to fixed interest rates, while the
remaining amount was tied to floating
interest rates. Therefore, indebtedness
measured by the net debt/EBITDA ratio
stood at 2.6x in 2021.
Main issuances and
changes to indebtedness
Prepayment of debt security issued
abroad: On August 26, 2021, Rede D' Or
São Luiz partially prepaid debt securities
issued abroad (Senior Notes II) whose
principal amount is US$315 million,
with fixed remuneration of 4.5% and
maturing in 2030.
19th issue of debentures: On August 27
and September 6, 2021, Rede D'Or São
Luiz issued the 2nd and 3rd series of the
19th debenture issue in the amounts of
R$2.5 billion and R$1.5 billion, respectively,
totaling R$4.0 billion maturing in 2031.
Debentures are remunerated by the CDI
+1.9% per year, with half-year payments.
There are no guarantees.
6th issue of Real Estate Receivables
(CRI): On May 11, 2021, through a
securitization company, Rede D'Or
São Luiz completed its 6th issue of
nominative, book-entry Real Estate
Receivables (CRI in Portuguese) in the
amount of R$1.5 billion, with maturity in
2036 in three annual amortizations in
2034, 2035 and 2036. CRI remuneration
was set at IPCA + 4.9347% per year,
to be paid semiannually. Concurrently,
we contracted a derivative financial
instrument to hedge against the IPCA
inflation rate, converting into interest
corresponding to 100.0% of CDI plus
1.35% per year. There are no guarantees.
7th issue of Real Estate Receivables
(CRI): On December 3, 2021, through
a securitization company, Rede D'Or
São Luiz completed its 7th issue of
nominative, book-entry Real Estate
Receivables (CRI in Portuguese) in two
tranches, in the total amount of R$1.0
billion. The 1st tranche in the amount of
R$400 million will mature on December
15, 2031 and will be remunerated by
IPCA + 5.5758% per year, to be paid
Expansion of the business
relationship with Amil
In May 2021, we announced
the expansion of our business
relationship with Amil by adding
(or supplementing) Amil's coverage
to 21 of Rede D'Or São Luiz's
hospitals, including an oncology
clinic. One of the highlights of the
agreement is the debut of Gloria
D'Or and Niterói D'Or hospitals, both
in the state of Rio de Janeiro, which
had never been accredited with Amil
and 3 Star brand hospitals located in
semiannually. The 2nd tranche in the
amount of R$600 million will mature
on December 15, 2036 and will be
remunerated by IPCA + 6.1017% per
year, paid semiannually. Concurrently,
we contracted a derivative financial
instrument to hedge against the IPCA
inflation rate, converting into interest
corresponding to 100.0% of CDI plus
0.56% per year for the 1st tranche and
1.403% per year for the 2nd tranche.
There are no guarantees
the cities of Rio de Janeiro, São
Paulo and Brasília.
This partnership consolidates the
importance and attractiveness
of the services provided by both
companies, creating a positive
impact on more than 1.3 million
Amil beneficiaries in the Federal
District and the states of Rio de
Janeiro and São Paulo.
79 REDE D'OR SÃO LUIZ | Annual Sustainability Report 2021
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