Published: November 26, 2010
Absa leads 2010’s first South African mortgage-backed security.
Vukile Property Fund has raised R462mn (US$64.5mn) in the first South African commercial mortgage-backed securitisation this year.
The deal, which was led by investment bank Absa Capital, refinances the property investor’s maturing notes that it issued five years ago when it raised R770mn.
This latest auction was 2.7 times oversubscribed as Vukile received bids totalling R1.2bn. The notes were issued in three asset classes and are due to mature in 2013.
Prasanna Nana, head of Absa Capital’s South African debt capital markets, says this is the bank’s fifth securitisation deal this year.
The other four include raising R876mn for power company Eskom and more than R2bn across two issuances for Edcon, a clothing and textile specialist. It also generated some R2.3bn for Absa Homes Retail Mortgage Backed Securities, which was the largest securitisation deal in South Africa since November 2007.