Vukile CEO Laurence Rapp
JSE-listed real estate investment trust Vukile Property Fund has issued R526-million of senior unsecured corporate bonds, with keen investor interest having been shown.
The initial target issuance size of R500-million was 4.1 times oversubscribed, having attracted bids of R2-billion.
Vukile CEO Laurence Rapp says the substantial support for the auction demonstrates the market’s confidence in the company’s robust business model, particularly in light of the current challenging macroeconomic environment.
Absa, as sole lead arranger of the bonds, adds to Rapp’s sentiment, commenting that the keen investor interest, coupled with the bonds’ competitive pricing showcases Vukile’s exceptional credit quality, strong balance sheet and well-defined business strategy.
Three-year notes of R200-million were placed at a margin of 130 basis points, and five-year notes of R326-million were placed at a margin of 144 basis points.
Vukile maintains its long-term issuer rating of AA and short-term issuer rating of A1+ with a stable outlook, as per GCR Ratings.
Vukile has R37-billion worth of assets in South Africa, which comprises 42% of its overall portfolio. The balance of property is held in Spain through a majority shareholding in Castellana Properties.