CORPORATE: MTN Raises R3.5 Billion
Recent Gauteng Business News
MTN yesterday successfully completed a R2 billion corporate bond issuance following a well-received R1.5bn commercial paper issuance last week.
The notes were issued off MTN Holding’s R10 billion note programme which is registered on the JSE Bond Exchange.
The corporate bond issuance comprised a R750m 5-year fixed-rate note (MTN03) and a R1.25bn 7-year fixed-rate note (MTN04), with credit spreads of 1,57% and 1,69% respectively.
“The credit spreads were at the low end and on some instruments tighter than the price guidance provided to investors ahead of the auctions, which is an indication of strong investor support for MTN,” says Andrew Costa, Head of Debt Capital Markets at Standard Bank.
“Investor demand for the 7-year corporate bond was exceptionally strong with R3,2 billion of bids – more than 2.5 times what was issued. The maturities of 3 and 12 months on the commercial paper issued, and 5 and 7 years on the corporate bonds provide MTN with a balanced capital market funding mix” says Barry Martin, Co-Head of Debt Capital Markets at RMB.
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