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KTH’s R800m bond offer oversubscribed

KTH’s R800m bond offer oversubscribed

Photo by Bloomberg

6th August 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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Pan-African investment holding company Kagiso Tiso Holdings (KTH) has completed the issuance of R800-million senior unsecured floating rate notes under its existing domestic medium-term note (DMTN) programme.

“We are delighted to announce that the offer was oversubscribed and that we were able to place the five-year notes at a competitive price. The DMTN programme allows us the ability to raise debt in a relatively quick and efficient manner. Following this new bond issue, KTH remains conservatively geared to fund future growth,” said KTH CFO Frencel Gillion.

The proceeds would bolster KTH’s existing cash resources and provide a war chest to fund the company’s current and expected acquisitions.

KTH earlier last month secured a “substantial” equity shareholding in Nigerian healthcare diagnostics company Me Cure Healthcare and, in June, it bought a 51% stake in Servest Group.

KTH CEO Vuyisa Nkonyeni said the company was pleased with the continued support of institutional investors. “The fact that we were able to achieve this result despite the current challenges in the local bond market and negative global market sentiment is an endorsement of KTH’s growth strategy and our proven record.”

This bond issue was the largest by a BBB-rated issuer over the past 18 months and the company’s second issue following the R600-million it had raised in 2012.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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