Kagiso Tiso Holdings makes its mark on Debt Capital Markets

01 November 2012

Kagiso Tiso Holdings (KTH) today announced that, through a wholly-owned subsidiary, Kagiso Sizanani Capital (KSC), using its Domestic Medium Term Note ("DMTN") programme with the JSE, it raised an additional R600 ("six hundred") million senior unsecured note from a range of local investors. This was achieved through a book build process. KSC now has capacity to issue instruments to a maximum of R2 billion.

The DMTN programme allows KSC to issue a range of instruments including both bonds and preference shares, making it unique in the South African market. Issuances under the programme are guaranteed by KTH. Moody's rating agency has rated KTH as 

The funds will be utilised to refinance existing debt and for future acquisitions. The JSE granted approval for the listing of the note, KSB008, from 1 November 2012.

Vuyisa Nkonyeni, CEO of KTH says:

"The DMTN programme represents an innovative way for investment companies such as KTH to access capital markets. It highlights KTH's management capabilities and our vision of building value enhancing black owned and managed investment platforms. The support from investors signals an endorsement of the KTH business model and its stature in the South African Market".

Frencel Gillion, CFO of KTH says:

"The new debt issue allows us to streamline the KTH Capital structure and enhances the KTH liquidity position. KTH remains conservatively geared and well capitalized to take advantage of future investment opportunities."

"Standard Bank acted as a sole lead manager to the bond issue. Standard Bank was delighted to partner with KTH and help to successfully issue their debut public bond." 

For any queries please contact: 

Frencel Gillion
Chief Financial Officer
Kagiso Tiso Holdings
Tel:    +27 (11) 562-2500
Cell:   076 992 2278


Samson Xulu
Senior Manager

Debt Capital Markets
Standard Bank South Africa
Tel:    +27 11 378 7006
Cell:   082 531 8279