Pan-African investment holding company Kagiso Tiso Holdings (KTH) has completed the issuance of R800m ($67.72m) senior unsecured floating rate notes under its existing Domestic Medium Term Note (DMTN) programme.

The proceeds will bolster KTH’s existing cash resources and provide a war chest to fund the company’s current and expected acquisitions.

Frencel Gillion, KTH CFO, said: “We are delighted to announce that the offer was oversubscribed and that we were able to place the 5 year note at a competitive price.”

“The DMTN programme allows us the ability to raise debt in a relatively quick and efficient manner. KTH is still conservatively geared post the new bond issue,” he said.

This is KTH’s second market bond offer with the first issuance completed in 2012 in the order of R600m.
The KTH bond issue is the largest by a BBB rated issuer over the last 18 months.

Vuyisa Nkonyeni, KTH CEO, said: “We were pleased with the continued support that we received from institutional investors. The fact that we were able to achieve this result, despite the current challenges in the local bond market and negative global market sentiment, is an endorsement of the KTH growth strategy and our proven track record.”