We are pleased to announce that through a strong collaborative effort across Corporate and Investment Banking (CIB), we have further solidified our long-running partnership with Equites Property Fund Limited by raising R1 billion via its first public bond auction in domestic debt capital markets. Through our Debt Capital Markets (DCM) Team, we have been appointed as lead arranger on most of Equites’ DCM placements since the establishment of its Domestic Medium-Term Note (DMTN) programme in early 2019. So far, it has successfully placed R2,4 billion of listed and unlisted bonds in the private and public bond markets.

Equites’ first public bond auction was very well received by institutional investors, being 2,82 times oversubscribed, with R2,8 billion worth of bids in the book and clearing five basis points below price guidance in both the one-year and three-year tenors. There was a total of 21 bidders in the book-build process, reflecting the pent-up demand for Equites’ paper and Nedbank’s strong ability to distribute corporate credit. With this transaction, we assisted in tightening Equites’ bond-market pricing to levels lower than its much larger and more established DCM property peers. Equites is currently one of the most sought-after property issuers in the DCM market and enjoys significant support from Nedbank as well as institutional investors.

The transaction showcases inter-cluster collaboration between Nedbank’s Client Coverage Team, DCM and our Property Finance businesses, leading to an optimal result for both a key CIB client and institutional fund managers who participated in this much-anticipated first public bond auction.