On Thursday, 26 January, TUHF Limited successfully launched the first R280m tranche of their R1 billion DMTN (Domestic Medium Term Note) Programme on the JSE (Johannesburg Stock Exchange).
TUHF welcomed new investors including Sanlam, Stanlib and RMI, who joined existing TUHF funders – Old Mutual ’s Futuregrowth and Mergence.
These funds will enable TUHF to grow its financing of inner city development projects in all major city centres of SA, directly improving rejuvenation and meeting the high demand for affordable accommodation downtown.
“The listing of this note on the JSE marks a new dawn for TUHF in accessing debt capital markets. Our credit rating and 14 year track record speaks to the specialisation, governance and excellent risk management our business has become known for in commercial finance and inner city property,” said Ilona Roodt, TUHF’s CFO.
She added that “Although the pricing was higher than originally anticipated, we realise that as this is TUHF’s inaugural debt listing and rating, new investors are being cautious. Seeing and managing investment opportunity in inner cities is our specialisation, with proven growth over 14 years having financed over R4 billion and 43 000 units downtown. Over time we look forward to building on this performance and developing strong new investor relationships.”
Paul Jackson, TUHF’s CEO and Co-founder added: “We look forward to the opportunities this unlocks for TUHF and our clients’ business growth. The funds will be instrumental in sustaining our 5 year average loan book growth of 13%. This building block in our long term debt capital strategy means we are one step closer in achieving our vision of a R5 billion book servicing every major city in South Africa.”
Launching the R280m tranche marks the first of 3 tranches planned over the next 3 years totalling R1 billion. The debt arranger for TUHF’s DMTN is Deloitte Capital.