EUROBOND
Steinhoff raises R12bn in Europe
The consumer industry conglomerate says the net proceeds will be used to repay debt and for ‘general corporate purposes’
Consumer industry conglomerate Steinhoff International, which moved its primary listing from the JSE to the Frankfurt Stock Exchange in 2015, has taken advantage of low interest rates in Europe to raise R12bn in the eurobond market. On Tuesday, Steinhoff confirmed a successful debut placement of €800m of senior unsecured fixed-rate corporate bonds. It said the net proceeds from the bond issue would be used to repay debt as well as for "general corporate purposes". The bond, which has a term of seven-and-a-half years, holds an annual coupon rate of 1.875% and will be listed on the Luxembourg Stock Exchange. Ratings agency Moody’s Investors Service has assigned a Baa3 (stable outlook) credit rating to the bond. This is in line with the long-term corporate rating assigned to Steinhoff. Steinhoff said the bond had attracted strong interest when offered to institutional investors after a European road show. As a result, the placement was increased from the initial target range of €500-€7...
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