Edcon set to announce new bond issuance

Published Feb 4, 2013

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 Clothing and homeware retailer Edcon is poised to announce a new bond issuance, according to market sources. The announcement could come as early as today. Business Report could not immediately confirm the value that Edcon hoped to raise through the bond issue, but it is expected to be dollar-denominated. In November 2009 Absa Capital raised R3.3 billion for Edcon under the OntheCards Investment receivables securitisation. This followed the placing of R1bn in listed notes in August of that year. In 2011 the retailer issued R1.01bn worth of bonds and e500 million (R6bn) worth of bonds respectively.

The group, which owns chains such as Edgars, Boardmans and CNA, delisted from the JSE in 2007 when US-based firm Bain bought the business for R25bn. Over the years Edcon’s debt has reached about R26bn. To ease its debt burden, Edcon last year announced the sale of its store card book to Absa for R10bn. Retail analysts had previously said Edcon’s deal with Absa would ultimately be part of the company’s plan to relist. – Nompumelelo Magwaza

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