Hyprop refinances debts to appease Moody's
By Nick Hedley - Apr 2nd, 12:58
Mall owner Hyprop Investments, whose shares have fallen by about a fifth since its credit rating was downgraded by Moody’s in February, says it has refinanced R4bn in external debts.
Moody’s said in February it was concerned that Hyprop would have to rely on external financing to cover R5bn of debts due in the next 18 months. Since that announcement, the property group’s shares have fallen 19.7% to R71.
Hyprop said that it had refinanced R4bn of external debts by the end of March.
In mid-March, the group announced the issue of two new unsecured five-year notes under its domestic medium-term note programme. Those notes raised R500m at an average interest rate of 171.5 basis points above the three-month Johannesburg interbank average rate (Jibar), Hyprop said.
The proceeds would be used to redeem a R350m bond maturing in July, to fund investments aimed at improving the entertainment offerings at its malls, and to install new tenants where space occupied by the struggling Edcon group was being trimmed.
Hyprop said it had also signed agreements to refinance the debts of its UK-based business, Hystead.
“The refinancing and extensions … address a significant part of the debt underlying the concern cited by Moody’s in its decision to downgrade Hyprop’s credit and issuer ratings,” the group said.
Hyprop said it was working to refinance US dollar-denominated debts linked to its sub-Saharan Africa portfolio and its rand-denominated bonds due August and November 2019. “The group has historically been able to refinance its debt with no difficulties, and is confident of its ability to continue to do so.”Business Live
Spar sees big jump in profit as consumers turn to store labels and alcohol
13/11/2019 - 11:43
Listed retailer Spar has published its financial results for the full year ended September 2019, reporting an 8.4% jump in revenue, with operating profits up 7.2% despite tough conditions across its operations.
Billions in investments flow in to improve SA's economy
13/11/2019 - 11:30
More businesses have pledged billions of rands in investment to the ailing South African economy at the second investment conference in Sandton.
Sales at Truworths Africa outperform its UK business
12/11/2019 - 13:24
Truworths, which was forced to write down its UK business by a third recently, said that retail sales in that country were flat in the 18 weeks to November 4, although its African operations performed better.
How to keep customers and make sales this Black Friday
11/11/2019 - 12:44
Five years ago, Black Friday and Cyber Monday didn’t even exist in South Africa. Today, they’re a major cash cow for local retailers. On Black Friday last year, consumers spent a record R2.9 billion, and that number is expected to jump 30% this year, with e-commerce playing a major part in that growth.
Walgreens' Sefano Passina's $70bn global ambition
11/11/2019 - 10:07
Any deal would be impossible without the backing of the Italian billionaire who owns 16% of the group and has China in his sights.