SUPERMARKET chain RB Patel Group Ltd (RBG) will be extending the offer period for its Secured Wholesale Corporate Bond issuance to next week following “overwhelming response” from both corporate and individual investors.
The offer, which required a minimum investment of $200,000, was initially scheduled to close today and sought to raise $20million from Fiji’s investing community.
“Response was overwhelming and exceeded all expectations,” an RB Patel spokesperson told this newspaper.
He confirmed the offer has been fully subscribed and the extension is to allow investors to make payments.
“Most were corporates and we were surprised by interest expressed from individuals.
“So we will be extending the offer period to December 3 to allow the applicants to make their payments as this one of the requirements under the offer.”
RB Patel is the second company listed on the South Pacific Stock Exchange (SPX) to raise capital via a corporate bond issuance, following in the footsteps of its parent company Fijian Holdings Ltd, who pioneered it with its $30m offer in 2022.
The move is being seen as a way to deepen Fiji’s stock market, providing more flexibility for listed companies in terms of capital raising.
“SPX notes with interest the continued engagement of corporates exploring capital raising through the wholesale corporate bond market,” SPX chief executive officer Sheraj Obeyesekere said.
“The opening of the RB Patel Group Limited Wholesale Corporate Bond (WCB) offer represents a further step in the expansion of Fiji’s capital-market activity and reflects the growing recognition of corporate debt instruments as an avenue for financial flexibility and long-term funding.
“Corporate bonds are widely used in global markets and can help investors build more balanced portfolios alongside equity investments.
“The participation of established listed companies such as RBG in the corporate debt space supports the establishment of a vibrant bond market, contributing towards enhancing the depth and maturity of Fiji’s capital market.”
RB Patel’s offer comes with competitive tax-free interest rates for the three bond terms: 3.15% per annum for 3-year term; 3.65% per annum for 5-year term; 4 .15% per annum for 7-year term.
According to the offer’s Information Memorandum, RBG will use the proceeds to: fund proposed property developments including RB Patel complexes; repay a portion of RBG’s existing drawn bank debt, providing some diversification of funding sources and tenure; and for general corporate purposes.
