The South Pacific Stock Exchange (SPX) recently celebrated a significant milestone with a Bell Ringing Ceremony to commemorate the successful listing of Wholesale Corporate Bonds issued by RB Patel Group Limited on the SPX Over-the-Counter Market. Reflecting strong investor interest, the bond issuance was oversubscribed. It consists of three fixed-rate tranches: a three-year tranche raising $10.45 million at an interest rate of 3.15%, a five-year tranche acquiring $7.45 million at 3.65%, and a seven-year tranche bringing in $3.35 million at 4.15%, culminating in a total raise of $21.25 million.
The introduction of RBG’s Wholesale Corporate Bonds builds upon the earlier listing by Fijian Holdings Limited in 2022, highlighting the ongoing progress within the SPX OTC Market. Governor of the Reserve Bank of Fiji, Ariff Ali, commented on the successful issuance, noting it signals an increasing confidence in Fiji’s capital markets and overall economy. He emphasized that a robust corporate bond market is crucial for enhancing private sector development by offering corporations access to long-term funding, thereby promoting sustainable economic growth.
Nitin Gandhi, Chairperson of SPX, remarked that the successful bond issuance indicates a growing alignment between the funding needs of issuers and the interest of investors for regulated fixed-income instruments. Each corporate bond listing enhances market depth, credibility, and reinforces confidence in the capital market’s capacity to facilitate diverse funding opportunities.
Jitoko Tikolevu, Chairperson of RB Patel Group, expressed gratitude to bondholders for their trust in the company and the bond offer. He acknowledged the invaluable support from the Reserve Bank and the SPX, as well as the contributions of BDO as Investment Adviser in ensuring the bond issuance’s success.
Moreover, SPX recognized the technical assistance provided by the International Finance Corporation (IFC), part of the World Bank Group, which has been pivotal in establishing the legal and regulatory framework for Fiji’s Listed Wholesale Corporate Bond market. This avenue is essential for long-term capital raising, offering flexibility in funding, meeting long-term financing needs, and operating within a transparent regulatory structure. Both issuers and investors can also take advantage of existing tax incentives related to the bond offerings.
SPX remains committed to collaborating with issuers, regulators, and advisors to advance a sustainable and credible corporate debt market, providing a positive outlook for the future of Fiji’s financial landscape.
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