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Equites raises R1 billion in a debt auction

09 November 2021

Cape Town, 9 November 2021: JSE listed specialist logistics property fund, Equites, raised R1 billion in the debt capital market (DCM) today through the first public auction off its JSE-listed DMTN Programme of 1-year and 3-year senior unsecured floating rate notes. Equites elected to issue R420 million in the 1-year note at a clearing rate of 3-month JIBAR plus 120 bps and R580 million in the 3-year note at a clearing spread of 3-month JIBAR plus 145 bps.

Andrea Taverna-Turisan, CEO of Equites, commented:

 “The outstanding result of the auction speaks volumes about the recent performance of the Group.

Equites was looking to raise R750 million with the option to upsize to R1 billion, with price guidance for the 1-year and 3-year notes of 125-135 bps and 150-160 bps respectively, tighter than the recently issued 3-year note private placement at 165 bps, which is reflective of a recent credit rating upgrade to AA-(ZA) on 19 August 2021 from GCR Ratings and positive investor sentiment.

Over R2.8 billion of bids were received in this morning’s auction conducted by the Nedbank DCM team, with a bid to cover ratio of 3.5 times on the 3-year note and 16 bidders participating in the 3-year note alone. 

Warren Douglas, Head of Treasury for Equites, says: “This auction proves that the DCM market rewards high-quality credit with both notes clearing 5 bps through the lower end of price guidance. Our regular engagement with debt and equity investors is key to the growth of our business, and it is through these strong relationships with the investor community that Equites can continue to grow from strength to strength”.

Taverna-Turisan, adds: “It is really pleasing to see the interest in Equites from the South African debt capital market investors, and the outstanding result of our first auction speaks volumes about the recent performance of the Group.”

© 2021 Equites Property Fund Ltd.