CALGRO M3 Extends its Debt Programme

October 6, 2008 at 12:00 AM EDT

JOHANNESBURG, 6 October 2008. - Today, property developer Calgro M3 tapped into their R300 million Yield-X listed debt programme with the listing of their second commercial paper worth R45 million. 

This short-dated commercial paper has a three month term and has already been taken up by institutional investors. “Like their first commercial paper, this new paper with its very attractive interest rate of 19.15%, was snapped up before today’s listing,” comments Warren Geers, General Manager of Trading at the JSE “This further demonstrates the markets demand for quality bonds”

“Bonds offer an affordable and flexible alternative for raising capital – its therefore not surprising that the corporate bond market in South Africa is gathering traction,” comments Geers, “There are a number of issuers planning to list corporate bonds on Yield-X demonstrating that current market conditions are not a deterrent to issuers.”

The monies raised by this second commercial paper will be used to further fund Calgro M3’s extensive residential investments. The company’s developments include the R1.6 billion Fleurhoff project and the R2,6 billion Midrand project.
FOR FURTHER INFORMATION PLEASE CONTACT:
Victoria Williams – 072 452 1772
Corporate Communications Consultants (Pty) Ltd
Tel: (011) 783 8926
Fax: (011) 783 7608
Email: victoria@corpcom.co.za

ON BEHALF OF
Warren Geers (JSE) - 083 296 8842
JSE
011 520 7000

And
Peter Waweru
CEO of Calgro M3
083 286 9831

About JSE Limited

As South Africa’s only full service securities exchange, the JSE connects buyers and sellers in four different financial markets, namely equities, equity derivatives, agricultural derivatives and interest rate instruments (Yield-X). The JSE Ltd offers the investor a truly first world trading environment, with world class technology, surveillance and settlement in an emerging market context. It is amongst the top 20 largest equities exchanges in terms of market capitalisation in the world.
For further information, please visit www.jse.co.za

About Calgro M3

Calgro M3 is a black-empowered residential housing developer with a 13-year track record and was first to market in the Integrated Housing niche, where it offers a combination of Affordable, Gap and RDP housing. It’s housing products also include medium to high income housing to a limited extent as it aims to dominate the Integrated Housing niche through private public partnerships. The company offers an end-to-end solution from land sourcing, financing and development, through housing construction to marketing. Separate specialist business units with dedicated management focus on high growth niche markets, ensuring a deep pool of expertise in each of Calgro M3’s service areas. Calgro M3 listed on the Altx in November last year.
For further information please visit the website: www.calgrom3.com, or contact on phone; 0861 CALGRO or send email, info@calgrom3.com .