Maturity:22 May 2023
Issue/fixed reoffer price:98.147
Spread at reoffer: 373.1bp over OBL
Launch date:Wednesday, May 15
Payment date:May 22
Joint books: Deutsche Bank, ING, Raiffeisen Bank International and Société Générale
Initial price guidance for the deal was set at low- to mid-3% area on Wednesday morning in London, before being refined to 3.125%-3.25%. Books for the deal at that point exceeded €1bn, including €45m of joint lead manager interest. The yield for the deal was later set at 3.125%. The note printed at 98.147 with a 2.625% coupon.
Investors were not just looking at the outstanding Nepi bonds to judge pricing, but also at other CEE property firms such as CPI Property group, Atrium and Globalworth.
The order book contained several new investors. A widened distribution base is a good sign that there’s faith in the improving Nepi story.
In November, Viceroy accused Nepi of overstating profits from its Romanian subsidiaries. But its share and bond prices have since recovered and the South African regulator cleared the fund of any wrongdoing earlier this month, which was a trigger for moving forward with this bond. But it was inevitable there would still be questions around it on the roadshow, given the impact of the report. It had extra potency because Viceroy was the firm that called out Steinhoff. But in this case there really was smoke without fire.
The company’s share price is up 20% since November 28, while the South Africa real estate service sector index is up only 9.55% and the Johannesburg all share index is up 8%.So it has definitely outperformed.
Rest of Europe 11%
Distribution by investor type
Fund managers 72%
Hedge funds/other 1%