Edcon raises R1.01bn through note placement

South African retailer Edcon announced on Monday, 4 April 2011, that it raised R1.01 billion through the issue of super senior secured notes under its newly established R2.5 billion domestic medium-term note programme registered with the JSE.

This marks Edcon's debut issuance of corporate bonds in the South African debt capital markets, the company said.

The notes were issued at an interest rate of 6.25% over the three-month Johannesburg Interbank Agreed Rate and have a final maturity of April 2016. The proceeds will be used to fully refinance Edcon's super senior rand loan, maturing in 2014.

"The bond issuance is a great outcome for Edcon and, together with the recent successful euro and dollar financing, shows that Edcon has strong support from both domestic and international investors," said Edcon chief financial officer Steve Binnie.

Goldman Sachs International and Rand Merchant Bank were joint lead managers on the issuance, with Absa Capital and Morgan Stanley as co-managers, and Deutsche Bank and Standard Bank as junior managers.