IDC raises R1.5 billion in the bond market arranged by Investec Bank and Tamela

The Industrial Development Corporation of South Africa Limited (“IDC”), rated AA+(zaf), has announced the tap issuance of two senior unsecured floating rate bonds with 2.5 and 4.5 year tenures, as well as two senior unsecured fixed rate bonds with 5.5 and 9.5 year tenures totalling R1.5 billion.

“Given the subdued issuance by corporates and State Owned Entities in the South African debt capital markets since the start of 2015, the pricing and level of participation for quality issuers like IDC bodes well for the second half of 2015” explains Louis Dirker of Investec Corporate and Institutional Banking.

It was as a result of the positive response from the market, with more than R3.6 billion bids received for the bonds on auction date, that the IDC increased the target issuance size from R1 billion to R1.5 billion at attractive pricing levels. IDC was also able to draw a diverse spread of investors in the auction.

The bonds were listed on the interest rate market of the Johannesburg Stock Exchange (JSE) on 29 May 2015.

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