Equites Property Fund raises R500 million in debt auction

Equites CEO, Andrea Taverna-Turisan.
CEO of Equites Property Fund, Andrea Taverna-Turisan.

Equites Property Fund has raised R500 million through a public auction of a five-year listed unsecured floating rate note in the South African debt capital market.

The REIT received R1.23 billion of bids from thirteen different investors in an auction conducted by Standard Bank. The clearing margin of 138 basis points above three-month JIBAR for this note is 1 basis point lower than that achieved in its 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 the 8th of November 2023, the company raised R200 million in a private placement at a margin of 125 basis points over three-months JIBAR – 4 basis points lower than the level achieved in the September 2023 auction.

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,” commented Warren Douglas, Treasurer and Head of Risk Management at Equites Property Fund.