JSE-listed real estate investment trust Equites has raised R500-million through the public auction of a five-year listed senior unsecured floating rate note in the South African debt capital market.
“Equites will use the funds raised to pay down existing debt, lower the cost of debt and, together with asset disposal proceeds, reduce the loan-to-value (LTV) ratio. It is pleasing to see that a broad range of South African investors continue to show deep support for Equites in our pursuit of excellence in developing best-in-class logistics facilities for A-grade tenants,” said Equites treasurer and head of risk management Warren Douglas.
Equites received R1.23-billion worth of bids from 13 different investors. The clearing margin was 138 basis points above the three-month Johannesburg Interbank Average Rate (Jibar) for this note, which is one basis point lower than that achieved in the previous public auction in September of 139 basis points.
Equites currently has a diverse book of 28 different fixed income investors in its listed debt notes.
On November 8, Equites raised R200-million in a private placement at a margin of 125 basis points over three-month Jibar, which is four basis points lower than the level achieved in the September auction, the company said.