Redefine Properties raised R781 million via a public bond auction, driven by strong demand from funders and healthy liquidity in the debt capital markets.
Redefine’s bond issue was oversubscribed by 1.77 times, receiving bids that resulted in an allocation of R781m across the five- and seven-year tenors, at an auction held on March 11, a statement said yesterday.
Five-year notes of R377m were placed at a margin of 149 basis points, and seven-year notes of R404m were placed at a margin of 165bps, both over a three-month Johannesburg Interbank Average Rate (JIBAR).
The issue was launched through Redefine’s R30bn domestic medium term note programme, with the nominal R377m and R404m in unsecured floating rate notes set to mature in 2029 and 2031, respectively.
The proceeds would be used to repay upcoming bond maturities during the 2024 financial year – Redefine’s loan-to-value ratio would remain unchanged.
Redefine’s portfolio, valued at R96.8 billion, is anchored in South Africa through directly held and managed retail, office, and industrial properties and is complemented by a strong presence in retail and logistics property assets in Poland.
BUSINESS REPORT