Emira Property Fund has, to date, successfully refinanced more than R1.2-billion of its debt maturing in the current financial year ending June 30, 2019, and is experiencing “keen demand and favourable pricing” in the process, the company noted in a statement on Thursday.
In September, the JSE-listed real estate investment trust refinanced maturing secured listed domestic medium term notes (DMTN) through the issue of new three- and five-year notes.
It aimed to raise R330-million, but received bids for R813-million.
The significant oversubscription enabled Emira to choose its split between note terms.
It assigned R130-million to three-year notes at 145 basis points above the three-month Johannesburg Interbank Average Rate (Jibar), achieving attractive pricing at the bottom end of its guidance.
Emira put R200-million in five-year notes at 160 basis points above the three-month Jibar, which was well within its guidance.
“We are extremely happy with the results, especially because we were able to improve the pricing of the notes,” reported Emira CFO Greg Booyens.
Further, a new seven-year secured note for R100-million was issued on Thursday, after requests were received from investors for a long-term note.
The new seven-year note has been issued at attractive pricing of 180 basis points over the three-month Jibar, and the funds are being used to refinance other maturing debt.
Booyens added that Emira keeps investors in its DMTN programme well informed and up-to-date in their understanding of Emira through biannual roadshows.
“Regular transparent communication builds good investor relationships and ensures investors are well versed in exactly what they are allocating funds to. This is evident with our new seven-year note, which shows investors are comfortable to take a long-term view on Emira.”
On July 1, Emira had R2.5-billion of maturing debt to refinance during its financial year to June 30, 2019.
With its latest DMTN auction and other initiatives completed, it has already refinanced a considerable portion of this.
'We’ve delivered on all our debt refinancing requirements to this point and are already approaching [the] halfway [mark of] what we need to achieve this financial year. We are seeing good pricing coming from the refinancing, coupled with strong demand, which signals that Emira remains a relevant and attractive investment,” said Booyens.