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2009-09-18: Joburg successfully launches its inaugural Commercial Paper Issue
THE City today issued a 2nd tranche of short term debt (Commercial Paper) raising R 758million and bringing the total Commercial Paper issued by the City to R1billion.
"The Issue is a great success for the City because we sought to raise the short term funding to provide bridging finance ahead of receipts from National Government", says Councillor Parks Tau member of the mayoral committee for Finance.
Investors showed great appetite in the Commercial Paper driving the success of the placement with the second tranche being 2.6 times oversubscribed. A total of 15 investors participated in the transaction. The issue was placed at 38bps above 6month Jibar, tightening slightly from the initial issue which was placed at 40bps.
Tau says, "In line with the requirements of section 45 of the MFMA, 6 month notes were issued to ensure that the Commercial Paper redeems by the end of the City’s financial year in June 2010".
The notes will mature in February and March 2010 respectively. Both tranches have a term of 6 months and have been listed.
The issue was in conjunction with Standard Bank of South Africa Limited, a dealer under the City of Johannesburg’s Domestic Medium Term Note Programme (DMTN).
Issued on behalf of:
Councillor Parks Tau
Member of the Mayoral Committee for Finance
Issued by:
Virgil James
Spokesperson
City of Joburg
082 467 9415
