On Thursday, 26 January 2017, TUHF Ltd successfully launched the first ZAR280 million tranche of their ZAR1 billion DMTN (Domestic Medium Term Note) programme on the Johannesburg Stock Exchange (JSE). TUHF welcomed new investors including Sanlam, Stanlib and RMH, who joined existing TUHF funders – Old Mutual ’s Futuregrowth and Mergence.

These funds will enable TUHF to grow its financing of inner city development projects in all major city centres of South Africa, directly improving rejuvenation and meeting the high demand for affordable accommodation downtown.

‘The listing of this note on the JSE marks a new dawn for TUHF in accessing debt capital markets,’ says TUHF CFO Ilona Roodt. ‘Our credit rating and 14-year track record speaks to the specialisation, governance and excellent risk management our business has become known for in commercial finance and inner city property.’

She adds that ‘although the pricing was higher than originally anticipated, we realise that, as this is TUHF’s inaugural debt listing and rating, new investors are being cautious. Seeing and managing investment opportunity in inner cities is our specialisation, with proven growth over 14 years having financed over ZAR4 billion and 43 000 units downtown. Over time we look forward to building on this performance and developing strong new investor relationships’.

CEO and co-founder of TUHF Paul Jackson says: ‘We look forward to the opportunities this unlocks for TUHF and our clients’ business growth. The funds will be instrumental in sustaining our five-year average loan book growth of 13%.

‘This building block in our long term debt capital strategy means we are one step closer in achieving our vision of a ZAR5 billion book servicing every major city in South Africa.’

Launching the ZAR280 million tranche marks the first of three tranches planned over the next three years totalling ZAR1 billion. The debt arranger for TUHF’s DMTN is Deloitte Capital.

15 February 2017