MMI Group Limited raises R1.5 billion from the South African debt capital markets
17 March 2014 | Company News & Results | Momentum Metropolitan Holdings | Nicolaas Kruger, MMI
MMI Group Limited (a registered long-term insurance company and fully-owned subsidiary of MMI Holdings Limited), which recently registered a R5 billion subordinated note programme with the JSE Stock Exchange, issued two bonds today totalling R1.5 billion.
The 5-year floating rate R750 million bond was issued at 3-month Johannesburg Interbank Agreed Rate (JIBAR) plus 1.46% and the 7-year fixed rate R750 million bond was issued at 1.7% over the government benchmark bond being the R208.
The issuance was just under two times oversubscribed, which resulted in MMI achieving pricing which is at the lower end of the price guidance that had been put out to the market by the arrangers of the issuance, Rand Merchant Bank, a division of FirstRand Bank Limited.
MMI Holdings Limited group CEO, Nicolaas Kruger, says "We are very pleased with the success of this issuance, which shows the depth and liquidity of funds available in the South African debt capital markets for subordinated note issuances. The significant interest in the two bonds demonstrates investors’ confidence in the financial strength and stability of MMI Group Limited”.
"The issuance of bonds will further diversify MMI Group Limited’s capital base and reduce its cost of capital,” concludes Kruger.
