Absa Capital, the investment banking division of Absa Bank Ltd, announced today that it had lead arranged and placed bonds to the value of R1,1 billion on behalf of Airports Company South Africa Limited (ACSA) with local institutional investors.
The issuance was done in three tranches consisting of a 7 year fixed rate note, 5 year inflation link tap and 14 year fixed rate tap issue. The issue size per bond was as follows:
• R556m at 280bps
• R500m at 5.5% p.a. (real yield)
• R50m at 200bps
Jacques Els, Head of Debt Capital Markets at Absa Capital, said that there was very strong support for the bonds from local institutions.
“Absa Capital continues to lead the market in debt arranging for premium South African clients. This announcement further underscores our leading capabilities,” said Els.
Phetolo Ramosebudi, ACSA Group Treasurer, said that ACSA will continue to tap the local domestic market, through auctions across its listed bond issues, to fund the airport infrastructure development programme.
The bonds will be listed on the Bond Exchange of South Africa and issued under ACSA’s R12 billion Domestic Medium Term Note Programme as part of the company’s ongoing funding requirements.
About Absa Capital
Absa Capital, a division of Absa Bank Limited (Absa) and affiliated to Barclays Capital, is a leading South African investment bank with global reach, offering clients financing, risk management and advisory solutions in a wide range of currencies and structures across the globe.
About Absa Capital Debt Capital Markets (DCM)
Absa Capital’s Debt Capital Markets division (DCM) provides large corporates, banks, state-owned entities in Governments across South Africa and sub-Sahara Africa with sophisticated debt capital market funding solutions. These include bonds, commercial paper, asset backed securitisation and hybrid debt, including convertible bond and preference share funding.
In 2008, Absa Capital concluded a number of major DCM deals, further entrenching its position as a key market participant in all aspects of DCM finance. Absa Capital excelled at the Bond Exchange of South Africa (BESA) Spire Awards 2008, receiving awards for Best Primary Markets House, Best Bond Sales Team and Best Credit Analyst.
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