Growthpoint has raised R1.8bn in the domestic debt capital markets through a heavily oversubscribed senior unsecured bond auction, underscoring strong investor appetite for listed property credit despite a still uncertain macroeconomic backdrop.The issue attracted 26 investors, the highest seen for a corporate auction in the local market this year, reflecting the market’s continued trust and confidence in Growthpoint, the group said. The initial target for the issuance was R1bn-R1.5bn, but demand quickly outstripped expectations, with bids exceeding R6.5bn — more than four times the final issue size. The transaction was ultimately upsized and cleared at R1.8bn, at what Growthpoint described as its most favourable margins achieved in a bond auction yet.Growthpoint South Africa CEO Estienne de Klerk said: “This is an excellent result. The strong investor support and record-tight margins achieved are especially pleasing, particularly given the current global geopolitical and local market headwinds.”The strong debt market performance follows a series of credit rating affirmations in May. Moody’s affirmed Growthpoint’s credit rating and revised the outlook to positive while Fitch also maintained its rating, citing the group’s resilient portfolio, stable financial structure and improving South African operations.Growthpoint highlighted its long-standing partnerships with Absa and Standard Bank, saying their deep capital markets expertise and support as joint arrangers were material in the transaction.The bonds were issued across three maturities, all priced at record-low margins. The three-year tranche raised R579m at Zaronia plus 90 basis points (Jibar equivalent +74 bps), the five-year paper R425m at Zaronia plus 100 bps (Jibar +84bps), and the seven-year notes R796m at Zaronia plus 125bps (Jibar +109 bps), reflecting tight pricing across the curve.The weighted average margin of Jibar plus 92 bps reflects a meaningful compression in funding costs, reinforcing the improving risk perception about the group’s credit profile. The five-year tranche alone reflected 65 basis points of tightening compared with Growthpoint’s comparable issuance in 2023, when pricing stood at Jibar plus 150 bps.“This bond issuance reaffirms Growthpoint’s robust access to debt capital markets as an active issuer. It reflects our investors’ confidence in Growthpoint’s credit quality and their belief in our current business proposition and strategic long-term direction. We deeply value their trust,” De Klerk said.