A bell-ringing ceremony took place yesterday in Suva, hosted by the South Pacific Stock Exchange (SPX), to celebrate the listing of wholesale corporate bonds issued by the RB Patel Group Limited (RBG) on the SPX over-the-counter (OTC) market. The event marked a significant milestone as the bond issuance was oversubscribed, raising a total of $21.25 million across three fixed-rate tranches. This included $10.45 million in a three-year tranche at 3.15 percent, $7.45 million in a five-year tranche at 3.65 percent, and $3.35 million in a seven-year tranche at 4.15 percent.
The listing of RBG’s corporate bonds builds upon the previous corporate bond listing by Fijian Holdings Limited (FHL) in 2022, which illustrates the ongoing growth of the SPX OTC market. Reserve Bank of Fiji (RBF) Governor Ariff Ali remarked on the successful issuance, attributing it to the increasing confidence in Fiji’s capital market and its economy. He pointed out that a robust corporate bond market enhances existing financing avenues and provides enterprises with access to long-term funding necessary for sustainable economic growth and stability.
Nitin Gandhi, chairperson of SPX, emphasized that the successful bond issuance underscores a growing congruence between market funding requirements and investor interest in regulated fixed-income instruments. He noted that each corporate bond listing further enhances market depth, credibility, and confidence, ultimately supporting diversified funding options.
Jitoko Tikolevu, chairperson of RBG, recognized the support from RBF and SPX in facilitating this process and expressed gratitude to BDO for their role as investment adviser. The SPX noted that it provided registry and trustee services for the bond issuance, with the Central Share Registry (CSRL) managing bondholder registry services and payments, while SPX Trustees (SPXT) were appointed as trustees. Additionally, technical assistance from the International Finance Corporation (IFC) helped establish the regulatory framework for the Listed Wholesale Corporate Bond market in Fiji.
The introduction of Listed Wholesale Corporate Bonds represents a vital long-term capital raising method in Fiji’s capital market, offering flexibility in funding arrangements and supporting long-term financial needs while adhering to a regulated and transparent market structure. The SPX highlighted that both issuers and investors enjoy tax incentives such as a 150 percent tax deduction on listing costs and on interest payments, in addition to an exemption from withholding tax on interest income for bondholders.
With ongoing collaboration among issuers, regulators, and advisers, SPX is committed to fostering a sustainable and credible corporate debt market in Fiji, which will benefit not just the economy but also the community by providing better access to capital and investment opportunities. The bell-ringing ceremony was attended by RBG representatives, bondholders, capital market stakeholders, and industry participants, marking a positive step forward in Fiji’s financial landscape.
Leave a comment