Investec places first South African multi-borrower commercial property securitisation

Investec has successfully placed the first multi-borrower commercial mortgage-backed securitisation (CMBS) in South Africa with a total value of notes issued of R1.469bn.

The transaction uses a highly innovative structure developed by Investec’s Debt Capital Markets team and represents the first series under the R10 billion Private Commercial Mortgages (Pty) Ltd CMBS programme arranged by Investec.

“Although the first of its type in South Africa, this type of structure is commonly used by banks and other loan originators in the US and Europe to finance their commercial property loan books,” says Nick Job Head of Investec’s Debt Capital Markets team.

The notes are backed by a pool of 134 of Investec Private Bank’s commercial mortgage loans totalling R1.469bn granted to 123 individual and commercial borrowers and secured by a diversified pool of 148 properties.

The first series’ Class A notes were rated Aaa.za by Moody’s Investors Service, giving the transaction a weighted average funding rate of 47 basis points over the Johannesburg Interbank Agreed Rate, or JIBAR. The four-year notes have been listed on the Bond Exchange of South Africa.

 

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