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Vukile places oversubscribed R500m unsecured bond

11th February 2020

     

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Retail-focused real estate investment trust Vukile Property Fund has issued R500-million senior unsecured corporate bonds with three- and five-year maturities.

The issue was significantly oversubscribed, with demand exceeding the maximum offer by 4.2 times. It drew orders from 15 different investors and attracted bids worth more than R2-billion.

The three-year bonds were placed at a favourable margin of 141 basis points, which was below guidance.

“We are delighted with the strong support received. The success of the auction shows strong support for Vukile and has further diversified our debt capital market investors,” says Vukile CEO Laurence Rapp.

The capital raised will increase Vukile’s split of unsecured debt and be used to redeem secured notes that are expiring in June and July.

As the proceeds of the issuance will be used to repay existing debt, the issuance is neutral for the company’s loan-to-value ratio.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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