Sappi: R1.5bn bonds issued today

Published Apr 16, 2013

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Sappi Southern Africa would issue a collective R1.5 billion worth of three-, five- and seven-year notes under its R5bn domestic medium-term note programme, the company said yesterday. The notes would be issued today and listed on the JSE’s interest rate market. They include senior unsecured floating-rate notes valued at R755 million, and R745m in senior unsecured fixed-rate notes. The paper maker said the proceeds would be used to repay a R1bn bond maturing in June, with the rest used to fund part of the dissolving wood pulp conversion project at the Ngodwana mill near Nelspruit. Sappi chief executive Ralph Boettger said: “In line with our strategy, this successful bond placement further reduces Sappi’s costs of finance and improves our debt maturity profile.” Sappi fell 2.26 percent to R25.51 on the JSE yesterday. – Nompumelelo Magwaza

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