Hyprop issues R450 million unsecured 6-year bond
Hyprop Investments Limited CEO Pieter Prinsloo.
Hyprop Investments Limited, today said that it had issued a R450 million 6-year corporate bond this week to refinance a maturing bank facility, bringing its total debt capital market issuances to R2.1 billion or 38% of total debt.
The JSE retail-focused fund said this is the first listed 6-year bond issuance in the South African property sector and was well-received by investors.
The bond was issued at a margin of 154bps, marginally reducing Hyprop's cost of funding. The base rate is fixed until 2018.
Hyprop has an A3.za/P-2.za national scale rating from Moody's Investor Services.
In August, Hyprop announced a strong set of results with distributions up 7,6% to 213 cents a unit for the six months to June 2013. The performance was underpinned by positive rental growth, reduction in interest costs and improved operating efficiencies.
