<\/p>\n
Fortress Real Estate Investments has raised R1.6 billion through a seven-year note issuance, marking the first time a JSE-listed property group has priced debt against South Africa\u2019s new benchmark rate, Zaronia.<\/p>\n
The issuance, concluded under the group\u2019s domestic medium-term note (DMTN) programme, was priced at Zaronia plus 161 basis points \u2013 equivalent to Jibar (Johannesburg Interbank Average Rate) plus 145 basis points after accounting for the credit adjustment spread.<\/p>\n
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Fortress raises R1.06bn in oversubscribed debt issuance
Zaronia initiative launched to lessen Jibar reliance<\/p>\n
This positions the transaction as a milestone in the local market\u2019s transition away from Jibar towards the Zaronia reference rate.<\/p>\n
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The move reflects a broader shift in South Africa\u2019s financial system, where institutions are gradually adopting Zaronia as the preferred benchmark for pricing debt instruments.<\/p>\n
Fortress said the latest issuance builds on strong investor demand seen in March, when it raised just over R1 billion in a bond auction that attracted bids of over R3.7 billion.<\/p>\n
The group\u2019s CFO Ian Vorster said the transaction highlights continued confidence in both the group and the local debt capital market.<\/p>\n
\u201cFollowing our successful bond auction in March, the placement of an attractively priced seven-year unsecured note is a further demonstration of investor confidence in Fortress and in South Africa\u2019s credit market,\u201d he said.<\/p>\n
Fortress share price\u00a0<\/p>\n
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Proceeds from the issuance will be used to refinance existing debt and for general corporate purposes, as the group looks to optimise its funding structure and extend its debt maturity profile.<\/p>\n
It said the longer tenor and favourable pricing support Fortress\u2019s strategy to deepen its engagement with capital markets while diversifying funding sources.<\/p>\n
* Likho Mbuka is a Moneyweb intern.<\/p>\n
#Fortress #raises #R1.6bn #landmark #Zaronialinked #bond<\/p>\n","protected":false},"excerpt":{"rendered":"
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