A BELL ringing ceremony was hosted by the South Pacific Stock Exchange (SPX) in Suva yesterday to mark the listing of the wholesale corporate bonds issued by supermarket chain RB Patel Group Limited (RBG) on the SPX over-the-counter (OTC) market.
The bond issuance, offered to eligible investors, was oversubscribed, and comprised three fixed-rate tranches – with $10.45million raised in a three-year tranche at 3.15 per cent; $7.45m in a five-year tranche at 3.65 per cent; and $3.35m in a seven-year tranche at 4.15 per cent, for a total of $21.25m.
The listing of RBG’s wholesale corporate bonds builds on the earlier corporate bond listing by Fijian Holdings Limited (FHL) in 2022 – a reflection of the continued development of the SPX OTC market.
Reserve Bank of Fiji (RBF) governor Ariff Ali said the successful issuance and listing reflected growing confidence in both Fiji’s capital market and the broader economy and emphasised the strengthening role of corporate debt within a well-functioning financial system. He said a credible corporate bond market complemented existing financing channels, and supported private sector developments by providing corporates with access to longer-term funding that contributed to sustainable economic growth and stability.
SPX chairperson Nitin Gandhi said the successful bond issuance and listing highlighted the growing alignment between issuer funding needs and investor demand for regulated fixed-income instruments.
He said each successful corporate bond listing strengthened market depth, credibility, and confidence in the capital market’s ability to support diversified funding and investment options. RBG chairperson Jitoko Tikolevu acknowledged the role of the RBF and SPX for regulatory facilitation and expressed appreciation to BDO as investment adviser for the execution of the bond issuance.
The SPX stated registry and trustee services for the RBG wholesale corporate bond issuance were provided by entities within the SPX Group, with Central Share Registry (CSRL) responsible for bondholder registry services and the facilitation of interest and principal payments, and SPX Trustees (SPXT) appointed as Trustee to represent the interests of bondholders. It also acknowledged the technical assistance provided by the International Finance Corporation (IFC) – a member of the World Bank Group – in supporting the development of the legal and regulatory framework for the establishment of the Listed Wholesale Corporate Bond market in Fiji.
Listed Wholesale Corporate Bonds represent an important long term capital raising avenue within Fiji’s capital market; and such instruments provide flexibility in funding structures, support longer term financing requirements, and operate within a regulated and transparent market framework. The SPX stated issuers and investors of these bonds also benefited from existing tax incentives, including 150 per cent tax deduction on prescribed listing costs, 150 per cent tax deduction on interest payments by issuers and an exemption from withholding tax on interest income earned by bondholders.
SPX continues to work with issuers, regulators, and advisers to support the development of a sustainable and credible corporate debt market.
RBG representatives, bondholders, capital market stakeholders, advisers and industry participants also attended the bell ringing ceremony.
