Fortress Real Estate Investments Limited has raised R900 million through a public bond auction.
The issuance was oversubscribed by 2.3 times, receiving R2 billion in bids that resulted in an allocation of R900 million across three- and five-year tenors at the recent auction held on the 17th of April 2024.
High demand for the R409 million of three-year notes resulted in the tenor being 1.83 times oversubscribed, settling on a margin of 140 basis points over JIBAR which was at the lower end of market guidance. Appetite for the longer dated five-year notes resulted in a spread of JIBAR of 158 basis points. The R491 million issuance was oversubscribed by 2.3 times.
“The success of this debt issuance demonstrates investor confidence in Fortress, beyond the equity markets. We are pleased with the appetite shown as we plan to be a regular feature within the debt capital markets in the future, in line with our broader domestic note program which will enable to us to achieve the growth objectives we have communicated to the market” commented Ian Vorster, Fortress’ CFO.
The issue was launched through Fortress’ JSE-approved R20 billion domestic medium-term note programme, with the three-year and five-year unsecured floating rate notes set to mature in 2027 and 2029 respectively.
