August 25 2026 17:45
JOHANNESBURG, SOUTH AFRICA
Vukile Property Fund, the specialist retail real estate investment trust (Reit) concluded an oversubscribed auction of senior unsecured floating rate notes recently, attracting bids of R3.65 billion resulting in the issuance being over 3.3 times subscribed.
The notes include three maturity tranches, all priced well below initial guidance, achieving a weighted average margin of 102bps over ZARONIA*.
The auction comprised a R272 million three-year tranche, a R408m five-year tranche, and a R420m seven-year tranche, which cleared at margins of 83bps, 96bps and 119bps over ZARONIA, respectively. All tranches priced materially inside the lower end of guidance, demonstrating strong investor appetite and resulting in an attractive funding outcome for Vukile. The notes are expected to settle on 27 August 2026.
“We are pleased with the strong demand and supportive pricing achieved in this auction, showcasing Vukile’s exceptional credit quality which GCR reaffirmed in July as an AA+(ZA) issuer rating with a stable outlook. The results reflect the market’s continued confidence in Vukile’s high-quality, diversified retail portfolio and our disciplined approach to capital allocation,” said CEO Laurence Rapp.
FirstRand Bank Limited, acting through its Rand Merchant Bank division, was appointed as sole lead arranger for the auction.
“The strong investor interest, with 17 diverse bidders participating and a subscription cover ratio of 3.3 times, reflects Vukile’s continued standing as a regular and credible issuer in the debt capital markets. The successful execution and attractive pricing achieved across all three tranches, reflects the market’s positive view of Vukile’s credit fundamentals, resilient balance sheet and clear strategic direction,” said Trishalia Naidoo, Co-Head: DCM at RMB.
Maurice Shapiro, Group Head of Treasury at Vukile, said: “This auction was executed against the backdrop of the market’s transition to ZARONIA, and the positive pricing achieved across all three tranches continues to lower Vukile’s cost of debt while extending our maturity profile. We value the instrumental contribution of RMB’s role as arranger and the continued support of our investors.”
Last month, GCR Ratings affirmed Vukile’s national scale issuer rating at AA+(ZA) for the long term and A1+(ZA) for the short term, with a stable outlook, following its latest review.
247@propertyflash.co.za
