---
title: "Vukile concludes oversubscribed R500 million bond issuance at record"
description: "Vukile issues R500m bonds at record low prices, improving capital cost and strengthening its AA+(ZA) rated retail REIT portfolio in SA, Spain & Portugal."
image: https://www.vukile.co.za/wp-content/uploads/2025/08/APS-2025-PressRelease-.jpg
canonical: https://www.vukile.co.za/news-and-insights/vukile-concludes-oversubscribed-r500-million-bond-issuance-at-record-low-pricing/
url: https://vukile.getmd.ai/news-and-insights/vukile-concludes-oversubscribed-r500-million-bond-issuance-at-record-low-pricing/.md
last_converted: 2026-05-13T16:40:48.270Z
---

Vukile Property Fund (JSE: VKE) has successfully concluded the issuance of R500 million in senior unsecured corporate bonds across three- and seven-year maturities, achieving market-leading pricing. The offering was met with overwhelming demand, attracting more than R3 billion in bids — over six times the target issue size.

The three-year tranche of R214 million priced at 102 basis points (bps) and the seven-year tranche of R286 million priced at 135bps — both tighter than initial price guidance. The weighted average margin of 121bps represents a substantial improvement over existing debt maturing in Vukile’s 2026 financial year, which will be re-paid, lowering Vukile’s cost of capital.

**Laurence Rapp, Chief Executive Officer of Vukile**, comments, *“We are pleased with the strong demand and favourable pricing received. The substantial support for the auction demonstrates the market’s endorsement of Vukile’s disciplined approach to capital allocation, our high-quality assets and our long-term investment strategy.”*

Absa Bank Limited, through its Corporate and Investment Banking division, acted as sole lead arranger.

**Marcus Veller, Principal, Debt Capital Markets of Absa**notes*, “The keen investor interest, with over 21 institutions participating in the auction, demonstrates Vukile’s strong position as a meaningful and regular DCM issuer. Vukile’s track record of financial performance and a supportive market culminated in an excellent auction and issuance outcome.”*

**Maurice Shapiro, Group Head of Treasury at Vukile**, adds, *“The record low pricing of this bond issuance marks a significant milestone in our debt capital markets strategy. The favourable outcome reduces Vukile average cost of debt and extends our maturity profile, reinforcing balance sheet strength and flexibility.”*

In July 2025, GCR Ratings upgraded Vukile’s national scale long-term issuer credit rating to AA+(ZA) from AA(ZA) and affirmed its short-term rating at A1+(ZA), with a stable outlook. GCR highlighted that “Vukile’s property performance remains a key rating strength,” citing its resilient portfolio as a consistent outperformer in the broader property sector.

Vukile is a specialist retail REIT with a high-quality, blue-chip-tenanted portfolio valued at approximately R50 billion, operating across South Africa, as well as Spain and Portugal through its 99.6% owned Spanish subsidiary, Castellana Properties. Vukile’s consumer-centric focus on defensive, everyday retail in both South Africa and Iberia has proven resilient and strategically accretive, driving value creation for stakeholders.

[Press Release](https://www.vukile.co.za/news-and-insights/category/press-release/)

- 26 August 2025

				- By
Vukile Press Team

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