Fortress Real Estate Lists Senior Unsecured Floating Rate Notes on JSE, Expanding Investment Opportunities

• Fortress Real Estate Investments has received approval to list its Senior Unsecured Floating Rate Notes on the JSE.
• The new financial instruments are part of the company’s Domestic Medium Term Note Programme and will be guaranteed by Capital Propfund Proprietary Limited and Fortress Income 3 Proprietary Limited.
• The listing will take effect on 9 June 2023, and the notes consist of two tranches: FIFB21 and FIFB22, with varying maturity dates and coupon rates.

Fortress Real Estate Investments Limited (formerly Fortress REIT Limited), a prominent South African real estate investment company, has obtained approval from the JSE Limited for the listing of its Senior Unsecured Floating Rate Notes. The new financial instruments, guaranteed by Capital Propfund Proprietary Limited and Fortress Income 3 Proprietary Limited, will be included in the company’s Domestic Medium Term Note Programme. The listing is scheduled to take effect on 9 June 2023.

The Senior Unsecured Floating Rate Notes comprise two tranches: FIFB21 and FIFB22. FIFB21 has a debt security code of FIFB21 and an ISIN of ZAG000196080. With a nominal value of ZAR 380,000,000.00, it offers a coupon rate of 3 Month JIBAR plus 165 basis points and a maturity date of 9 June 2026. On the other hand, FIFB22 bears a debt security code of FIFB22 and an ISIN of ZAG000196098. It has a nominal value of ZAR 420,000,000.00, a coupon rate of 3 Month JIBAR plus 190 basis points, and a maturity date of 9 June 2028.

The issuance of these debt securities will take place on 9 June 2023 at an issue price of 100%. Interest will commence on the same date, and subsequent interest payments will be made on 9 September, 9 December, 9 March, and 9 June of each year until the respective maturity dates.

Investors will have until 17:00 on 29 August, 28 November, 26 February, and 29 May of each year until maturity to register their ownership. The books will close on 30 August, 29 November, 27 February, and 30 May of each year until maturity.

The interest rate for each interest period will be determined on the respective interest determination dates, with the first interest rate determination date for the FIFB21 and FIFB22 notes set for 6 June 2023. Upon maturity, investors will receive a final maturity amount equivalent to 100% of the aggregate nominal amount.

Detailed terms and conditions are available in the pricing supplements accompanying the notes. The Domestic Medium Term Note Programme has a total value of ZAR 20,000,000,000.00, with the current total notes in issue under the program, excluding the new issuance, reaching ZAR 7,910,000,000.00.