Growthpoint issues R500m long term corporate bond

Posted On Tuesday, 17 May 2011 02:00 Published by Commercial Property News
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Growthpoint Properties Limited (GRT) has issued a R500 million senior unsecured corporate bond issue of five-year maturity. 

Growthpoint PropertiesThis marks the second term bond to be issued by Growthpoint in the local market

The bond issue was significantly oversubscribed, with R1.7 billion of bids submitted. A total of 12 different investors participated in the corporate bond auction, contributing to significant demand equal to 3.4 times subscription.

“We are delighted with the strong support received from our local investor base and the success of the auction following on from the inaugural bond issuance in December 2010,” says Stuart Snowball, Financial Director of Growthpoint Properties Limited. The cash raised from the bond issuance will be used to finance a portion of the Victoria & Alfred Waterfront (V&A) acquisition.

Acting as sole lead arranger, Absa Capital, the investment banking division of Absa Bank Ltd, welcomes the success of Growthpoint’s bond issuance. “This is a resounding success for Growthpoint and follows on from the positive momentum we see coming through from the market” says Prasanna Nana, Head of Debt Capital Markets South Africa at Absa Capital.

As South Africa’s largest listed property company, Growthpoint has assets exceeding R38.6 billion and a market capitalisation of over R27 billion. It has a portfolio of 426 properties that are geographically diversified across South Africa and 33 properties located in Australia. Growthpoint is currently in the process of acquiring a 50% ownership in the Victoria & Alfred Waterfront.

Last modified on Sunday, 09 June 2013 15:26

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