Equites raises R1.25 billion in a debt auction

10 November 2022

Cape Town, 10 November 2022: Specialist logistics property fund, Equites, which develops and owns a high-quality portfolio of logistics properties in key locations in South Africa and the United Kingdom, raised R1.25 billion in the South African debt capital market today in a public auction of 1-year, 3-year, and 5-year senior unsecured floating rate notes. Equites elected to issue R385 million in the 1-year note at a clearing rate of 3-month JIBAR plus 108 bps, R447 million in the 3-year note at a clearing spread of 3-month JIBAR plus 146 bps, and R418 million in the 5-year note at a clearing spread of 3-month JIBAR plus 159 bps.

Andrea Taverna-Turisan, CEO of Equites, commented:

 “The excellent result of this, our second public debt auction, is a further indication of the strong support that Equites receives from capital markets.

Equites was looking to raise R1 billion, with the option to upsize to R1.25 billion, off its JSE-listed DMTN Programme, and received R2.34 billion of bids from 21 different bidders across the three notes in the auction conducted by Standard Bank. The 3-year and 5-year notes cleared in the mid of price guidance and the 1-year note cleared below the price guidance of 110-120 bps. The strong pricing of Equites’ debt is reflective of positive investor sentiment and a recent credit rating outlook upgrade to Positive on its AA-(ZA) rating from GCR Ratings on 30 August 2022.

Warren Douglas, Treasurer for Equites, says: “Prior to the auction, Equites embarked on a deal roadshow to engage with investors, the success of which is evidenced by the continued diversification and increase in the debt capital market investor base with 29 financial institutions invested in Equites’ listed debt. Our regular engagement with debt and equity investors is key to the growth of our business, and it is through these deep relationships with the investor community that Equites continues to grow from strength to strength.”

© 2024 Equites Property Fund Ltd.
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