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KTH bolsters acquisition war chest with $63mln bond sale

Image Credit: Kagiso Tiso Holdings

Kagiso Tiso Holdings, the pan-African investment company has raised 800 million rand (approximately $63 million) in an oversubscribed issue  of senior unsecured floating rate notes under its existing Domestic Medium Term Note or DMTN program. The proceeds will be use to boost the company’s existing cash resources and provide funds for the company’s current and expected acquisitions.

In the statement, KTH CFO Francel Gillion said, “…we were able to place the five year notes at a competitive price….Following the new bond issue KTH remains conservatively deared to fund future growth.”

The issue is the company’s second, having raise R600 million in 2012, and is the largest by a BBB-rated issuer in the last 18 months. The pricing and other financial terms of the issue were not revealed.

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