Equites raises R500 million in debt auction

Cape Town, 9 November 2023: JSE-listed real estate investment trust (REIT), Equites Property Fund Limited, raised R500 million through the public auction of a 5-year listed senior unsecured floating rate note in the South African debt capital market.

Equites received R1.23 billion of bids from 13 different investors in an auction conducted by the Standard Bank of South Africa. The clearing margin of 138 basis points above 3-month JIBAR for this note is 1 basis point lower than that achieved in the last public auction in September 2023 of 139 basis points. Equites currently has a diverse book of 28 different fixed-income investors in its listed debt notes.

On Wednesday, 8 November 2023, Equites raised R200 million in a private placement at a margin of 125 basis points over 3-month JIBAR; – 4 basis points lower than the level achieved in the September 2023 auction.

Warren Douglas, Treasurer and Head of Risk Management at Equites, commented:

“Equites will utilise the funds raised to pay down existing debt, lower the cost of debt, and, together with asset disposal proceeds, reduce the loan-to-value ratio. It is pleasing to see that a broad range of South African investors continue to show deep support for Equites in our pursuit of excellence in developing best-in-class logistics facilities for A-grade tenants”.