Growthpoint issue 4.3 times over-subscribed

Posted On Wednesday, 22 September 2010 02:00 Published by eProp Commercial Property News
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Growthpoint Properties Limited has announced that it has issued R200 million of 3-month senior unsecured commercial paper (CP)

Stuart SnowballThe strong appetite for Growthpoint Properties paper saw the interest margin (above the 3-month Jibar rate) again tightened to 33 basis points (0.33%) from previous levels of 39 bps in August, 45 bps in May 2010, 52 bps in February 2010 and 55 bps in November 2009.

The leading JSE ALSI 40 company also issued R400 million of 6-month CP at 50 bps over Jibar, a tightening of 30 bps compared to the initial 6-month issue in November 2009 of 80 bps over Jibar.

Strong demand from investors resulted in the issues being 4.3 times over-subscribed, with total bids of over R2,5 billion received.

The demand for this issue continues to reinforce the success of Growthpoint’s CP programme, the first for a South African listed property company, which was launched in November 2009.

Financial Director Stuart Snowball explains that the company’s continued access to capital markets through CP holds advantages for Growthpoint, including the lowered average cost of borrowings and diversification of borrowing sources.

The fund has a quality portfolio of 431 properties in South Africa valued at more than R30,0 billion, and a further 25properties in Australia through its investment in Growthpoint Properties Australia (GOZ), valued at R4,9 billion.

Last modified on Tuesday, 22 April 2014 12:08

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