Vukile concludes oversubscribed ZAR1.1 billion bond auction, pricing tighter than guidance across all tranches

JOHANNESBURG, 25 August 2026 - Vukile Property Fund (JSE: VKE), the specialist retail real estate investment trust (REIT), has concluded an oversubscribed auction of senior unsecured floating rate notes, attracting bids of R3.65 billion resulting in the issuance being over 3.3 times subscribed.

The notes include three maturity tranches, all priced well below initial guidance, achieving a weighted average margin of 102bps over ZARONIA*.

The auction comprised a R272 million three-year tranche, a R408 million five-year tranche, and a R420 million seven-year tranche, which cleared at margins of 83bps, 96bps and 119bps over ZARONIA, respectively. All tranches priced materially inside the lower end of guidance, demonstrating strong investor appetite and resulting in an attractive funding outcome for Vukile. The notes are expected to settle on 27 August 2026.

Laurance Rapp, Chief Executive Officer of Vukile, comments, “We are pleased with the strong demand and supportive pricing achieved in this auction, showcasing Vukile's exceptional credit quality which GCR reaffirmed in July as an AA+(ZA) issuer rating with a stable outlook. The results reflect the market's continued confidence in Vukile's high-quality, diversified retail portfolio and our disciplined approach to capital allocation.”

FirstRand Bank Limited, acting through its Rand Merchant Bank division, was appointed as sole lead arranger for the auction. “The strong investor interest, with 17 diverse bidders participating and a subscription cover ratio of 3.3 times, reflects Vukile's continued standing as a regular and credible issuer in the debt capital markets. The successful execution and attractive pricing achieved across all three tranches, reflects the market’s positive view of Vukile’s credit fundamentals, resilient balance sheet and clear strategic direction,” says Trishalia Naidoo, Co-Head: DCM at RMB.

Maurice Shapiro, Group Head of Treasury at Vukile, adds, “This auction was executed against the backdrop of the market's transition to ZARONIA, and the positive pricing achieved across all three tranches continues to lower Vukile’s cost of debt while extending our maturity profile. We value the instrumental contribution of RMB's role as arranger and the continued support of our investors.”

Last month, GCR Ratings affirmed Vukile's national scale issuer rating at AA+(ZA) for the long term and A1+(ZA) for the short term, with a Stable Outlook, following its latest review.

According to GCR, the rating reflects Vukile's “large, geographically diverse retail portfolio, with proven asset enhancement strategies supporting consistently strong operating performance,” and the company's “demonstrated capital discipline, having grown its property portfolio materially over the last two and a half years via a balanced mix of debt, equity and asset recycling, with a sound financial profile expected to be maintained.”

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*ZARONIA — the South African Rand Overnight Index Average, based on actual overnight market transactions — is succeeding Jibar as South Africa's benchmark interest rate, ahead of Jibar's final publication at the end of 2026

ABOUT VUKILE PROPERTY FUND:

Vukile is a uniquely customer-led specialist retail property group and the third largest primary JSE-listed South African REIT (real estate investment trust) with a total asset value of R63.7bn and 70% of its portfolio invested in Spain, Portugal and Italy. The Group is rooted in South Africa, where its portfolio of township, rural, urban and commuter malls serve some of the country's most compelling consumer markets. Vukile is at the forefront of shopper and retail innovation and experience in both its domestic and European investment markets. Visit our website for more information. Connect with Vukile on LinkedIn.

Images: Maurice Shapiro, Group Head of Treasury at Vukile, Trishalia Naidoo, Co-Head: DCM at RMB and Laurance Rapp, Chief Executive Officer of Vukile