Pinnacle Technology Holdings held a successful auction of domestic medium-term notes, amounting to R315-million, under its newly established R2,5-billion Domestic Medium Term Note Programme registered with the JSE (Interest Rate Market). 
This marks Pinnacle’s debut issuance of corporate bonds in the South African debt capital markets.
The notes comprised a three-year floating-rate note, bearing interest at a rate spread of 2,1% over the three-month JIBAR rate. JIBAR is currently 5,125% per annum, giving an initial interest rate of 7,225% on the note.
The notes will be listed today (30 April 2013).
“The success of our first note auction is a great outcome for Pinnacle. This is made particularly gratifying by the fact that it was over-subscribed by more than 50%, relative to the initial indication of R250-million that we gave to the market. This clearly demonstrates the strong support of Pinnacle amongst institutional investors, for which we continue to be grateful,” says Arnold Fourie, CEO of Pinnacle.
Rand Merchant Bank acted as lead arranger on this issuance.