Pinnacle debut auction 50% oversubscibed

Listed ICT firm, Pinnacle Technology Holdings says it has completed the successful auction of domestic medium-term notes amounting to R315 million, adding that it was over-subscribed by more than 50%.

This falls within the group’s newly established R2.5 billion Domestic Medium Term Note Programme registered with the JSE Limited (Interest Rate Market).

It also marks Pinnacle’s debut issuance of corporate bonds in the South African debt capital markets.

The notes comprised a 3-year floating-rate note bearing interest at a rate spread of 2.1% over the 3 month JIBAR rate. JIBAR is currently 5.125% p.a. giving an initial interest rate of 7.225% on the note.

The notes will be listed on Tuesday, 30 April 2013.

“The success of our first note auction is a great outcome for Pinnacle. This is made particularly gratifying by the fact that it was over-subscribed by more than 50%, relative to the initial indication of R250 million that we gave to the market.”

“This clearly demonstrates the strong support of Pinnacle amongst institutional investors, for which we continue to be grateful,” said Arnold Fourie, CEO of Pinnacle.

Rand Merchant Bank acted as lead arranger on this issuance.

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Pinnacle debut auction 50% oversubscibed