Related Articles
Top Stories
Feb 13 2012 07:58
Greek lawmakers have approved a new round of drastic austerity measures after a long day of street battles between police and protesters left dozens injured.
Feb 13 2012 07:41
A reader gets advice on quick returns on a lump sum.
Feb 12 2012 15:59
Moral hazard, financial weapons of mass destruction, a huge mess - these were the words used by a founder member to sum up the collapse of the Pinnacle Point Group.
Johannesburg - Listed property giant Growthpoint's recent entry into the money market was exceptionally well received by the market.
The company's programme to issue R500m in short-term corporate bonds on the Bond Exchange of South Africa was three times oversubscribed, with R1.5bn being bid.
The issue includes R360m in three-month fixed notes and R140m in six-month notes linked to the three-month Johannesburg Inter Bank Agreed Rate (Jibar).
Growthpoint chief executive Norbert Sasse said a total of 12 investors had bid for the notes, resulting in significant demand and a favourable interest rate.
The weighted average margin of 62 basis points amounts to prime minus 2.7%. This is considerably cheaper than long-term debt.
The bond market had therefore given Growthpoint access to a more affordable source of funding, which would lead to continuing distribution growth for the company's investors, declared Sasse.
Growthpoint had previously received funding from traditional sources, including mortgage loans from banks as well as commercial mortgage-backed securitisation (CMBS).
Rating agency Moody's recently awarded Growthpoint both a global and domestic investment-grade rating, enabling the company to diversify its funding sources through, for instance, the issue of commercial paper.
- Sake24.com
For more business news in Afrikaans, go to Sake24.com.