The RB Patel Group (SPX:RBG) has marked a significant milestone with the successful launch of its corporate bond debut on the South Pacific Stock Exchange (SPX). This event has generated enthusiasm among investors, underlining their interest in well-structured investment opportunities within the capital markets. SPX chairman Nitin Gandhi remarked on the positive reception of RBG’s secured wholesale corporate bond offer, which concluded last week with an impressive total raise of $21.25 million.
“The strong response to this bond offer demonstrates that there is clear appetite among investors for new and well-structured investment opportunities within our capital market,” Mr. Gandhi stated. He emphasized that the robust demand from eligible investors reflects the substantial depth of capital available in the system, which is poised to support credible issuers seeking long-term funding.
SPX reported that the demand was evenly distributed across all three tranches of the bond offer, which included three-year, five-year, and seven-year maturity options. The offering attracted the participation of 25 eligible investors from both institutional and individual segments. This growing engagement with corporate debt instruments signifies an enriching diversification of investment portfolios among market participants.
Following the first corporate bond issuance, which drew eight investors, this latest offering showcases the expanding participation in fixed income markets as the corporate bond sector continues to develop. Mr. Gandhi expressed optimism that this successful transaction would inspire more companies to explore capital-raising avenues through market-driven instruments.
“With more issuers coming forward, we anticipate that the corporate bond market will play an increasingly vital role in fostering business growth, capital formation, and the overall development of the market in Fiji,” he noted. SPX affirmed its commitment to collaborating with issuers and investment advisors to ensure an orderly growth of the corporate bond market alongside equity capital raising.
The bond offering, which was initiated in early October and closed last week, required a minimum investment of $200,000. The capital raised is earmarked primarily for financing RBG’s upcoming projects in Labasa, Nadawa, Nasinu, and Ba, as well as for repaying a portion of existing bank debt. Subscription figures by tenor were reported as follows: $10.45 million for three-year bonds, $7.45 million for five-year bonds, and $3.35 million for seven-year bonds.
RB Patel now stands as the second company listed on the SPX to offer its debt through a secured corporate bond issuance, following in the footsteps of its parent company, Fijian Holdings Ltd, which pioneered this path with a $30 million offering in 2022. This development is a promising indication of a growing interest in capital market opportunities, potentially steering Fiji’s economic landscape toward a prosperous future.
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