12 JUN 2017

MCB Capital Markets advises MaxCity Property Fund on its MUR 800 million structured bond issue


MCB Capital Markets, the investment banking and asset management arm of MCB Group, the largest banking group in Mauritius, is pleased to announce that it acted as Lead Advisor and Arranger for the establishment of MaxCity Property Fund Ltd and the issue of MUR 800 million 'A' rated bond under a MUR 1 billion Medium Term Note Programme.

MaxCity Property Fund Ltd, a wholly owned subsidiary of MaxCity Properties Ltd and part of the MaxCity Group, owns a portfolio of quality property assets with a diversified tenant mix. MaxCity Group has developed major projects over the past 25 years, including the 1 CyberCity office building in Ebene, One Cathedral Square office building in Port Louis, Emerald Park high-end morcellement in Trianon, and Grand Baie La Croisette, the largest shopping mall in Mauritius.

The transaction, a MUR 800 million 10-year bond, comprises a rated senior tranche of MUR 600 million and a junior tranche of MUR 200 million. The senior tranche received a Provisional Single A (Structured Obligation) rating with Stable Outlook (Provisional CARE MAU A (SO) Stable) from CARE Ratings (Africa) Ltd.

The transaction was successfully placed with a range of financial institutions that took advantage of the attractive yield, the investment grade rating and capital relief provisions.

Maxime Fon Sing, Chairman of MaxCity Group, commented:
“This transaction is an important milestone for MaxCity as the company embarks on its next level of development. Under the advice of MCB Capital Markets, we successfully regrouped our property assets under a single entity and optimized our funding structure, matching our cash flows and minimizing our cost of finance in the process.”

Rony Lam, Chief Executive Officer of MCB Capital Markets, commented:
“This transaction reflects the continued interest of our clients in diversifying their sources of financing. We are pleased to have assisted MaxCity in this process, giving the company added flexibility to manage its future borrowings. It is proof that the local debt capital market is open not only to large companies but also to middle-sized borrowers with a good track record.”

About MCB Capital Markets
MCB Capital Markets is the investment banking and asset management arm of MCB Group, the largest banking group in Mauritius. The company provides a broad range of services under one roof, including corporate finance advice, asset management, stockbroking, private equity, structured products and registrar. Based in Mauritius, the team works with clients wishing to start or grow their operations in Africa and helps them develop solutions that meet their financing, strategic and investment objectives.

About MaxCity Ltd

MaxCity Property Fund Ltd is primarily a yielding vehicle and owns a portfolio of quality assets with a diversified tenant mix. MaxCity Group has over 25 years of experience in property development in Mauritius. To-date, MaxCity has developed, together with other co-investors, over one million square feet of retail, offices and residential properties with a current property value of around MUR 5 billion.

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