--- title: "Vukile concludes oversubscribed R1bn unsecured bond issue" description: "Vukile issued R1.027bn in senior unsecured bonds across three, five and debut seven-year terms, extending its debt maturity profile." image: https://www.vukile.co.za/wp-content/uploads/2024/02/Vukile-concludes-oversubscribed-R1bn-unsecured-bond-issue-28-Feb-2.jpg canonical: https://www.vukile.co.za/news-and-insights/vukile-concludes-oversubscribed-r1bn-unsecured-bond-issue-and-ups-its-dcm-participation/ url: https://vukile.getmd.ai/news-and-insights/vukile-concludes-oversubscribed-r1bn-unsecured-bond-issue-and-ups-its-dcm-participation/.md last_converted: 2026-05-14T16:21:40.885Z --- Vukile Property Fund (JSE: VKE) has issued R1.027bn of senior unsecured corporate bonds with three, five and – for the first time – seven year maturities in an oversubscribed issuance that extends Vukile’s debt maturity profile. Indicating significant market interest, the initial target issuance size was R750m. Three-year notes of R530m were placed at a margin of 128bps, five-year notes of R402m were placed at a margin of 143bps, and Vukile’s inaugural longer tenure seven-year notes of R95m were placed at a margin of 155bps, all favourably priced towards the lower end of guidance. The issuance has increased the share of Vukile debt issued in debt capital markets (DCM) to 17% of total group debt (previously only 12%), which further diversifies its debt towards debt investors and cements its strategy to be a meaningful and regular participant in these markets. *“In line with our goal, Vukile has successfully expanded its presence in the DCM. This move not only provides investors with a High Quality Liquid Assets (HQLA) issuance but also extends the maturity of Vukile’s debt with the addition of a new seven-year bond offering,”* says Laurence Rapp, CEO of Vukile. Absa Corporate and Investment Bank, a division of Absa Bank Limited, acted as sole lead arranger. *“This successful auction further supports Vukile’s strategy to be a regular DCM issuer. By increasing the issuance size of the auction above R1 billion, Vukile was able to increase exposure to the market while serving investor demand,”* says Marcus Veller of Absa. The proceeds of the issuance will be used to repay existing bank debt, as such Vukile’s loan-to-value ratio is unchanged. In July 2023, GCR Ratings affirmed Vukile’s national scale long-term issuer rating of AA(za) and its national scale short-term issuer rating at A1+(za), with a stable outlook. Vukile is a specialist retail real estate investment trust (REIT) developed on the foundation of a well-defined, specialised growth strategy, with a focus on owning dominant retail assets across South Africa and Spain. Vukile adopts a proactive approach to asset management. It is focused on customer centricity as the driver of value creation and acts as a centre of growth by creating value for all its stakeholders. Vukile’s assets are valued at around R40 billion, with 40% in South Africa and 60% in Spain. The Spanish assets are held in the 99.5% Vukile-owned Madrid-listed subsidiary, Castellana Properties Socimi. [Press Release](https://www.vukile.co.za/news-and-insights/category/press-release/) - 28 February 2024 - By Vukile Press Team ** ** ** **