FANews
FANews
RELATED CATEGORIES

Absa Capital raises R462 million for Vukile Property Fund

09 November 2010 Absa Capital

- first commercial mortgage backed security placed in 2010

Absa Capital, the investment banking division of Absa Bank Ltd, has successfully placed R462 million on behalf of Vukile Property Fund through Vukile Investment Securitisation (Pty) Ltd (VIPS). This is the first commercial mortgage backed securitisation to be placed in 2010 - yet another signal of the revived health of the South African debt capital markets.

The VIPS securitisation was established by Absa Capital in 2005 with an inaugural issue of R770 million. R462 million of notes were due to mature on 7 November 2010. These notes have now been refinanced by the R462 million raised on 2 November 2010.

Michael Potts, FD of Vukile Property Fund, said: “We are delighted with the outcome of the refinancing of the R462 million tranche as our ‘all in’ cost of finance of this debt has reduced by 54 basis points or R2.5 million per annum.”

Prasanna Nana, Head of the South African Debt Capital Markets team at Absa Capital, said: “This deal marks Absa Capital's fifth securitisation deal this year. Further we are proud of our ongoing relationship with Vukile Property Fund and its VIPS securitisation since its inception.”

R1.2 billion of bids were received during the auction which was 2.7 times oversubscribed.

Three different classes of three-year floating notes were issued, maturing on 7 November 2013, and paying interest at three month JIBAR plus 145 basis points for the class A note (Aaa.za rated); JIBAR plus 195 basis points for the class B note (Aa1.za rated); and JIBAR plus 205 basis points for the class C note (A1.za rated).

Quick Polls

QUESTION

How confident are you that insurers treat policyholders fairly, according to the Treating Customers Fairly (TCF) principles?

ANSWER

Very confident, insurers prioritise fair treatment
Somewhat confident, but improvements are needed
Not confident, there are significant issues with fair treatment
fanews magazine
FAnews June 2024 Get the latest issue of FAnews

This month's headlines

Understanding prescription in claims for professional negligence
Climate change… the single biggest risk facing insurers
Insuring the unpredictable: 2024 global election risks
Financial advice crucial as clients’ Life policy premiums rise sharply
Guiding clients through the Two-Pot Retirement System
There is diversification, and true diversification – choose wisely
Decoding the shift in investment patterns
Subscribe now