Land Bank issues R1bn bond
The Land Bank has issued a R1-billion, three-year floating rate note with a bid range of between 114 and 140 basis points above the three-month Johannesburg Interbank Agreed Rate (Jibar) rate, it reported on Tuesday.
This came after the bank received 18 bids totalling R1.8-billion against a planned issuance of R750-million, which represented an oversubscription of 2.4 times.
CFO Lebogang Serithi believed the strong appetite for the issuance confirmed strong investor confidence in a financially stable, well-managed and governed Land Bank that would continue to contribute to the reversal of the decline in the agriculture sector, the promotion of food production and the raising of rural incomes and jobs.
“The bank is continuing with its efforts of raising longer-dated debt and the successful issuance is a reflection of the market’s continued confidence in the management team’s ability to take the Land Bank forward,” he commented.
The Land Bank provides loans to emerging and established commercial farmers for the establishment of agricultural businesses and for expansion purposes.
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