Growthpoint Properties has successfully raised R1.8bn through a senior unsecured bond issuance after attracting bids of more than R6.5bn in a heavily oversubscribed auction.

The issue, which initially targeted between R1bn and R1.5bn, was upsized amid strong investor demand and settled at the most favourable margins achieved by the company in a bond auction to date.

The bonds were issued across three tenors, all priced at record-low margins, underscoring investor confidence in Growthpoint’s credit quality and long-term strategy.

The three-year bonds of R579m priced at Zaronia +90bps (the published credit adjustment spread implies a Jibar equivalent margin of +74bps), the five-year bonds of R425m at Zaronia +100bps (Jibar +84bps) and the seven-year bonds of R796m at Zaronia +125bps (Jibar +109bps).

The weighted average margin of Jibar +92bps is substantially less than existing margins, lowering Growthpoint’s cost of capital. Highlighting the significant improvement in pricing over a three-year period, the five-year tranche achieved a margin compression of 65bps compared to Growthpoint's five-year bond issued in 2023 at Jibar +150bps.

“This is an excellent result. The strong investor support and record-tight margins achieved are especially pleasing, particularly given the current global geopolitical and local market headwinds,” says Estienne de Klerk, SA chief executive officer of Growthpoint Properties.

The issue attracted 26 separate investors, the highest seen for a corporate auction in the local market this year, reflecting the market’s continued trust and confidence in Growthpoint.

Investor confidence grows

Growthpoint values its longstanding partnerships with Absa Bank Limited and Standard Bank of South Africa Limited, whose dedication and deep capital markets expertise as joint arrangers were instrumental in delivering this landmark transaction.

The strong auction result follows the recent affirmation of Growthpoint's credit ratings in May 2026.

Moody's Ratings affirmed the corporate family rating at Ba2 and lifted the outlook to positive in line with SA’s sovereign rating, Moody’s also upgraded Growthpoint’s national scale long-term rating to Aaa(za) from Aa1(za).

Fitch affirmed Growthpoint’s global scale rating at BB+ and national scale rating at AAA.za, driven by Growthpoint’s portfolio’s resilience to economic uncertainties and geopolitical tensions, its stable financial structure and improving performance and occupancies in its SA portfolio.

Growthpoint benefits from a diversified funding platform. It maintains a ZAR30bn Domestic Medium Term Note (DMTN) programme listed on the JSE, providing flexible and efficient access to the debt capital markets. The company's funding base is well diversified across multiple bank and institutional lenders. Growthpoint also has access to significant undrawn committed revolving credit facilities of R5.7bn, ensuring robust liquidity.

“This bond issuance reaffirms Growthpoint’s robust access to debt capital markets as an active issuer. It reflects our investors' confidence in Growthpoint's credit quality and their belief in our current business proposition and strategic long-term direction. We deeply value their trust,” concludes de Klerk.

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