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Lewis Group launches R2 billion bond programme

October 29, 2013

Cape Town – Listed furniture retailer, Lewis Group, has successfully raised R500 million in its debut issue on the debt capital market.

This is the first issue under Lewis Group’s R2 billion domestic medium-term note (DMTN) programme to be listed on the JSE with effect from 31 October 2013.

The funds were raised across a three-year bond and six month commercial paper. The issue was 2.55 times subscribed, with bids totaling R1.277 billion.

Chief executive officer, Johan Enslin, said the group entered into a DMTN programme to diversify its sources of funding. The proceeds of the issue will be used primarily to fund operational requirements and for refinancing maturing debt.

In September this year, the Lewis Group was assigned an ‘A(za)’ long-term credit rating by Global Credit Ratings with a stable outlook.

Absa was the sole lead arranger and ratings adviser on the transaction.