The auction of domestic medium term notes amounted to R315 million under its newly established R2.5 billion domestic medium term note programme, registered with the JSE Limited (Interest Rate Market). The notes comprised a 3-year floating-rate note bearing interest at a rate spread of 2.1% over the 3-month JIBAR rate, which is currently 5.125% pa, giving an initial interest rate of 7.225% on the note.
"The success of our first note auction is a great outcome for the group. This is made gratifying because it was over-subscribed by more than 50%, relative to the initial indication of R250 million that we gave to the market. This clearly demonstrates the strong support amongst institutional investors, for which we continue to be grateful," says Arnold Fourie, CEO of Pinnacle.
The group is one of Africa's largest providers of ICT products and services. Its profit growth over the last eighteen years has averaged over 40% per annum and has been premised on its ability to be innovative and to be able to offer the right technology at the right time.
Through its subsidiaries, Pinnacle Africa, Infrasol, Centrafin, AxizWorkgroup, Datanet, Merqu Communications and JAG Engineering, it offers hardware and software products, implementation solutions and structured finance solutions.
Its continued focus to increase shareholder returns will be achieved through a combination of expanded product selection to its basket of offerings and strategic acquisitions of enterprises that will add value to the group.
For more information, go to www.pinnacleholdings.co.za.
