Vukile Property Fund concludes oversubscribed R526m unsecured bond issue

Laurence Rapp.

Vukile Property Fund has issued R526 million of senior unsecured corporate bonds with three- and five-year maturities. Indicating significant market interest, the initial target issuance size of R500 million was 4.1 times oversubscribed, attracting bids of R2 billion.

Three-year notes of R200 million were placed at a margin of 130 basis points, and five-year notes of R326 million were placed at a margin of 144 basis points, both priced at levels better than guidance.

We are pleased with the strong demand and favourable pricing received, particularly in light of the current challenging macro-environment — it is an outstanding result. In this context, the substantial support for the auction demonstrates the market’s confidence in our robust business model,” says Laurence Rapp, CEO of Vukile.

Absa Corporate and Investment Bank, a division of Absa Bank Limited, acted as sole lead arranger.

In July 2023, GCR Ratings affirmed Vukile’s national scale long-term issuer rating of AA(za) and its national scale short-term issuer rating at A1+(za), with a stable outlook.