Vukile Property Fund recently issued R500m of senior unsecured corporate bonds with one- and three-year maturities. The issue was significantly oversubscribed, with the auction attracting bids of more than R2.1bn.
Laurence Rapp, CEO of Vukile
Three-year notes of R342m were placed at a margin of 185bps, better than guidance and favourably priced relative to recent issuances from the Reit sector. One-year notes of R158m were placed at a margin of 135bps, mid-guidance.
“We are delighted with the robust demand received and the positive pricing achieved, especially considering the uncertainty and challenges in the current macro-environment,” said Laurence Rapp, CEO of Vukile.
The issuance proceeds were used to repay VKE13, a R535m note which matured on 27 August.