South Africa’s Growthpoint Properties Issues R1 Billion 10-Year Bond

Growthpoint Properties, a prominent South African real estate investment trust, has successfully issued a R1 billion senior unsecured bond with a 10-year maturity. The private placement, arranged by Standard Bank, saw strong investor interest, leading to the note being placed at a margin of 185bps above three-month JIBAR, marking the most favorable pricing in several years. This achievement reflects the market’s trust in Growthpoint, with multiple investors participating.

Estienne de Klerk, SA CEO of Growthpoint Properties, expressed delight in the robust support from investors amid global turmoil and local market challenges. Over the past year, Growthpoint has raised close to R2.5 billion in 10-year funding in the listed bond market, showcasing the strength of its credit quality. Carl Wiesner, Head of Syndicate at Standard Bank Group, highlighted the confidence investors have in the future of the business.

Growthpoint, holding credit ratings from Fitch and Moody’s, reaffirms its access to debt capital markets through this issuance. The company recently won the Bonds, Loans & ESG Capital Markets Africa Award for Real Estate Finance Deal of the Year and privately placed an R1 billion Green Bond for 10 and seven years. The Green Bond proceeds will finance renewable energy projects, aligning with Growthpoint’s commitment to carbon neutrality by 2050.

Growthpoint’s strategic initiatives include a Power Purchase Agreement with Etana Energy for 32% of its annual electricity consumption through renewable energy, emphasizing its dedication to sustainable practices. The successful bond offering underscores investors’ trust in Growthpoint’s proposition and its long-term vision.