Prosus Raises R32-bn in a Bond Sale


The Dutch arm of South African internet titan Naspers, Prosus raised R32.8 billion ($2 billion) in a bond offering on Tuesday.

The company said the funds would be used for general corporate purposes, including potential future mergers and acquisitions activity, and to further augment the company’s liquidity position.

The company said in a statement that the offerings attracted strong investor demand, with US dollar notes more than seven times subscribed and euro debut notes more than eleven times subscribed on the eight year notes and twelve times subscribed on the twelve year notes.

“It is expected that this financing will be ratings neutral for Prosus,” the company said.

“Prosus remains committed to an Investment Grade credit rating, as management believes this to be important in providing the group with debt capital market access at attractive rates. The offerings are expected to close on 3 August 2020, subject to customary closing conditions.”

The company has made an application to Euronext Dublin to admit the bonds to listing on the Official List of Euronext Dublin and trading on the regulated market thereof.

Prosus is 73.8% owned by Naspers, with a free float of 26.2%.

Prosus assets comprise its international internet interests outside of South Africa, including operations and investments in online classifieds, food delivery, payments and FinTech, etail, education, and social and internet platforms.

It also has a secondary, inward listing on the Johannesburg Stock Exchange.

As Europe’s largest listed consumer internet company by asset value, Prosus gives global internet investors direct access to Naspers’s portfolio of international internet assets through exposure to China, India and other high-growth markets, as well as to the global tech sector. At the time of the listing, around $16 billion of value was unlocked for Naspers’s shareholders by reducing the discount to the combined net asset value of Prosus and Naspers.


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