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Aveng`s First Commercial Paper Issue A Success
Aveng Limited
JSE Code: AEG
ISIN: ZAE 000018081
Johannesburg - Thursday July 11, 2002
The country`s leading construction, steel and cement group, Aveng Limited has
launched a R750-million commercial paper programme to facilitate the issuing of
commercial paper in the local market. Investec Bank Limited is the arranger and
dealer under the programme.
As its debut issue under the programme, Aveng has successfully placed R100-
million three-month paper in the market. The paper was priced off the 3-month
Johannesburg Interbank Agreed Rate (Jibar).
Aveng finance director Dennis Gammie explained that the company has launched the
commercial paper programme to diversify its sources of funding. "The CP
programme will add another dimension to Aveng`s funding strategy and in time we
will build on it to tap alternative sources of finance. It will also provide
Aveng with a degree of funding flexibility."
At the company`s December interim, Aveng`s debt to equity ratio stood at 46%
(down from the six months` earlier figure of 55%) and Mr Gammie said that the
company continued to concentrate on further reducing the group`s debt levels.
Aveng, which earns almost half of its revenues outside of the Rand Common
Monetary Area, boosted its headline earnings by 17% to R154-million for the six
months ended December 31, 2001.
"With the commercial paper issue in place, Aveng will be in a position to
restructure its existing liability profile and fund working capital which will
reduce the group`s reliance on short term bank funding and reduce the liquidity
risk associated with such funding."
In March this year Aveng was awarded excellent ratings for both its long-term
and short-term debt by two of the country`s rating agencies. Fitch Ratings
assigned Aveng an A (zaf) long term rating and a F1 (zaf) short term rating
while Global Credit Ratings (GCR) gave the company an A for its long term debt
and A1 for its short term debt. These ratings indicate that the group has
strong credit quality, sound protection factors and high certainty of timely
repayment.
Please note:
Aveng Limited is a South African based group. It was listed on the JSE
Securities Exchange SA in July 1999 and is aiming to be a globally competitive
construction-related group focused principally on the developing world.
Its major businesses are
Construction :
Steel and Allied :
Cement :
Aveng`s objectives are to achieve
PE rating in the top three of the BCE sector
Long-term real ROE of 10%
Minimum 25% of earnings in hard currencies
Visit our website - www.aveng.co.za
ends
ISSUED BY: PENELOPE GRACIE INVESTOR RELATIONS
ON BEHALF OF: AVENG LIMITED
FURTHER INFORMATION: PENELOPE GRACIE
CONTACT: OFFICE +27 (11) 447-3301
MOBILE 082-55-77-444
Date: 11/07/2002 02:45:49 PM Produced by the JSE SENS Department
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