Vukile Property Fund has concluded the issuance of R500 million in senior unsecured corporate bonds across three- and seven-year maturities, achieving market-leading pricing.

The offering was met with overwhelming demand, attracting more than R3 billion in bids – over six times the target issue size.

The three-year tranche of R214 million was priced at 102 basis points and the seven-year tranche of R286 million priced at 135 basis points – both tighter than initial price guidance. The weighted average margin of 121 basis points represents a substantial improvement over existing debt maturing in the REIT’s FY2026, which will be repaid, lowering its cost of capital.

In July 2025, GCR Ratings upgraded Vukile’s national scale long-term issuer credit rating to AA+(ZA) from AA(ZA) and affirmed its short-term rating at A1+(ZA), with a stable outlook. GCR highlighted that “Vukile’s property performance remains a key rating strength,” citing its resilient portfolio as a consistent outperformer in the broader property sector.