{"id":9669,"date":"2025-08-27T11:38:24","date_gmt":"2025-08-27T09:38:24","guid":{"rendered":"https:\/\/sareit.co.za\/?p=8619"},"modified":"2025-08-27T11:38:24","modified_gmt":"2025-08-27T09:38:24","slug":"vukile-concludes-oversubscribed-r500-million-bond-issuance","status":"publish","type":"post","link":"https:\/\/muddev.co.za\/sareit\/vukile-concludes-oversubscribed-r500-million-bond-issuance\/","title":{"rendered":"Vukile concludes oversubscribed R500 million bond issuance"},"content":{"rendered":"

Vukile concludes oversubscribed R500 million bond issuance at record-low pricing<\/strong><\/p>\n

\u00a0<\/strong>Vukile Property Fund (JSE: VKE) has successfully concluded the issuance of R500 million in senior unsecured corporate bonds across three- and seven-year maturities, achieving market-leading pricing. The offering was met with overwhelming demand, attracting more than R3 billion in bids \u2014 over six times the target issue size. <\/strong><\/p>\n

The three-year tranche of R214 million priced at 102 basis points (bps) and the seven-year tranche of R286 million priced at 135bps \u2014 both tighter than initial price guidance. The weighted average margin of 121bps represents a substantial improvement over existing debt maturing in Vukile\u2019s 2026 financial year, which will be re-paid, lowering Vukile\u2019s cost of capital.<\/p>\n

Laurence Rapp, Chief Executive Officer of Vukile<\/strong>, comments, \u201cWe are pleased with the strong demand and favourable pricing received. The substantial support for the auction demonstrates the market\u2019s endorsement of Vukile\u2019s disciplined approach to capital allocation, our high-quality assets and our long-term investment strategy.\u201d<\/em><\/p>\n

\u00a0<\/em>Absa Bank Limited, through its Corporate and Investment Banking division, acted as sole lead arranger.<\/p>\n

Marcus Veller, Principal, Debt Capital Markets of Absa <\/strong>notes, \u201cThe keen investor interest, with over 21 institutions participating in the auction, demonstrates Vukile\u2019s strong position as a meaningful and regular DCM issuer. Vukile\u2019s track record of financial performance and a supportive market culminated in an excellent auction and issuance outcome.\u201d<\/em><\/p>\n

Maurice Shapiro, Group Head of Treasury at Vukile<\/strong>, adds, \u201cThe record low pricing of this bond issuance marks a significant milestone in our debt capital markets strategy. The favourable outcome reduces Vukile average cost of debt and extends our maturity profile, reinforcing balance sheet strength and flexibility.”<\/em><\/p>\n

In July 2025, GCR Ratings upgraded Vukile\u2019s national scale long-term issuer credit rating to AA+(ZA) from AA(ZA) and affirmed its short-term rating at A1+(ZA), with a stable outlook. GCR highlighted that \u201cVukile\u2019s property performance remains a key rating strength,\u201d citing its resilient portfolio as a consistent outperformer in the broader property sector.<\/p>\n

Vukile is a specialist retail REIT with a high-quality, blue-chip-tenanted portfolio valued at approximately R50 billion, operating across South Africa, as well as Spain and Portugal through its 99.6% owned Spanish subsidiary, Castellana Properties. Vukile\u2019s consumer-centric focus on defensive, everyday retail in both South Africa and Iberia has proven resilient and strategically accretive, driving value creation for stakeholders.<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Vukile concludes oversubscribed R500 million bond issuance at record-low pricing \u00a0Vukile Property Fund (JSE: VKE) has successfully concluded the issuance of R500 million in senior unsecured corporate bonds across three- and seven-year maturities, achieving market-leading pricing. The offering was met with overwhelming demand, attracting more than R3 billion in bids \u2014 over six times the […]<\/p>\n","protected":false},"author":4,"featured_media":8359,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false,"footnotes":""},"categories":[9,1],"tags":[202,145,35,90],"class_list":["post-9669","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-members-news","category-uncategorized","tag-absa-bank","tag-debt-strategy","tag-sa-reit-association","tag-vukile-property-fund"],"featured_image_src":{"landsacpe":["https:\/\/muddev.co.za\/sareit\/wp-content\/uploads\/2025\/06\/Laurence-Rapp-450x445.jpg",450,445,true],"list":["https:\/\/muddev.co.za\/sareit\/wp-content\/uploads\/2025\/06\/Laurence-Rapp-450x348.jpg",450,348,true],"medium":["https:\/\/muddev.co.za\/sareit\/wp-content\/uploads\/2025\/06\/Laurence-Rapp-263x300.jpg",263,300,true],"full":["https:\/\/muddev.co.za\/sareit\/wp-content\/uploads\/2025\/06\/Laurence-Rapp.jpg",450,513,false]},"_links":{"self":[{"href":"https:\/\/muddev.co.za\/sareit\/wp-json\/wp\/v2\/posts\/9669","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/muddev.co.za\/sareit\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/muddev.co.za\/sareit\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/muddev.co.za\/sareit\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/muddev.co.za\/sareit\/wp-json\/wp\/v2\/comments?post=9669"}],"version-history":[{"count":0,"href":"https:\/\/muddev.co.za\/sareit\/wp-json\/wp\/v2\/posts\/9669\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/muddev.co.za\/sareit\/wp-json\/wp\/v2\/media\/8359"}],"wp:attachment":[{"href":"https:\/\/muddev.co.za\/sareit\/wp-json\/wp\/v2\/media?parent=9669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/muddev.co.za\/sareit\/wp-json\/wp\/v2\/categories?post=9669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/muddev.co.za\/sareit\/wp-json\/wp\/v2\/tags?post=9669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}