Hyprop has successfully refinanced/raised R4 billion in the
space of three months since December 2018, effectively addressing the
concern of Moody’s that the group may be challenged to refinance its R5
billion of debt falling due in the next eighteen months.
Moody’s cited the concern in support of its decisions, in February 2019, to downgrade Hyprop’s credit and issuer rating.
Hyprop CEO, Morne Wilken, says the group had been confident from the
outset of successfully raising or refinancing the R5 billion referenced
by Moody’s.
“In light of Hyprop’s historical track record of extensive access
to debt funding and our established relationship with lenders, the
group did not share Moody’s concern.”
Last month, Hyprop issued two new unsecured five-year notes under its
Domestic Medium Term Note Programme, raising R500 million, which Wilken
says has been earmarked for “redeeming a Hyprop bond maturing in
July, funding improved entertainment offerings at our malls and
financing new tenant fit-outs following Edcon’s reduction of floor space.”
Hyprop’s first capital project for 2019 will be The Ratanga Family
Entertainment Centre at Canal Walk, which will revive parts of the
former successful Ratanga Junction and introduce new world-class rides
just outside of the centre’s food court.
Hyprop has also successfully refinanced over EUR210 million of loans
in Hystead, which houses its South-Eastern Europe portfolio. Wilken adds
that the interest is expected to be in line with the average Euro cost
of borrowing of such loans. Further, the group is making good progress
on refinancing its Dollar-denominated debt in its sub Saharan Africa
portfolio and certain local bonds due for redemption later this year.
“Hyprop’s executive will keep a close watch on global retail
trends and allocate capital appropriately to projects that will keep our
malls relevant. From a debt perspective, we remain confident of our
ability to continue refinancing our loans and raising capital as
necessary, based on our historical success in doing so.” concludes Wilken.
