Property loan stock company Hyprop (HYP) has joined with Standard Bank (SBK) to introduce a capital market debt funding structure appropriately suited to listed property companies, Hyprop says.
According to the statement, Standard Bank's newly established funding platform, Blueprint Originator, offers property companies such as Hyprop access to debt funding through the capital markets, resulting in flexible, lower cost financing.
Nine hundred million rand of Hyprops's external debt is to be restructured and funded by the Originator.
"Hyprop's finance costs will be substantially reduced as the funding is cheaper than ordinary bank funding. This will translate directly onto our bottom line and drive up our future distributions to unitholders," said Hyprop managing director Pieter Prinsloo.
Stewart Shaw-Taylor, MD of Standard Bank's Property Finance and Advisory Services Division, said that the Blueprint Originator is in line with the global trend towards simplified funding solutions that afford clients the benefits of traditional capital market debt funding without the added rigidity.
"Hyprop is an ideal partner in this funding innovation because of the quality of its retail property assets," he said.
"We expect that other listed property companies will follow Hyprop's lead in making use of similar funding solutions."
