Strong demand for DMTN issuance reflects confidence in credit market conditions, says Fortress
JSE-listed Fortress Real Estate Investments has announced the successful issuance of about R1.06-billion under its domestic medium-term note (DMTN) programme.
The issuance comprised two tranches – R561-million three-year notes priced at a margin of 95 basis points over a three-month Johannesburg Interbank Average Rate (Jibar) and R495-million five-year notes priced at a margin of 113 basis points over a three-month Jibar.
The transaction was met with strong investor demand, attracting total bids of R3.75-billion, resulting in a significant oversubscription.
The outcome reflects continued support from a range of institutional investors and highlights improving sentiment in South Africa’s domestic credit markets. The pricing achieved represents a meaningful tightening in spreads compared with Fortress’ prior issuances, underscoring enhanced funding efficiency and growing confidence in Fortress’ credit profile.
“The strength of demand and the quality of the order book are encouraging indicators of improving conditions in the South African credit market. It also reflects growing confidence in Fortress’ balance sheet and our disciplined approach to capital management. We are pleased to have achieved competitive pricing while further extending our maturity profile,” says CFO Ian Vorster.
Proceeds from the issuance will be used to refinance existing debt and for general corporate purposes. The transaction supports Fortress’ ongoing funding strategy to optimise its capital structure, diversify funding sources and maintain a well-managed debt maturity profile.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
