Vukile concludes oversubscribed R767m unsecured bond issue

Laurence Rapp, CEO of Vukile Property Fund.

Vukile Property Fund has issued R767 million of senior unsecured corporate bonds with three- and five-year maturities.

With significant market interest, the initial target issuance size of R500 million was 4.6 times oversubscribed, attracting bids of R2.3 billion and the issue was increased to R767 million.

Three-year notes of R232 million were placed at a margin of 139 basis points, and five-year notes of R535 million were placed at a margin of 159 basis points, both favourably priced at levels better than guidance.

In July 2022, GCR Ratings upgraded Vukile’s national scale long-term issuer rating to AA(za) and affirmed its national scale short-term issuer rating at A1+(za), with a stable outlook.

Rand Merchant Bank, a division of First Rand Bank, acted as sole lead arranger.