PPC may be seeking alternative underwriters for its R4bn rights issue as the fees charged by local banks are 'prohibitively expensive'.
Based on data published by Statistics South Africa, building activity in the South African market for new private sector-financed housing (see explanatory notes) remained under pressure in the first five months of 2016, with much subdued year-on-year growth in activity levels in May this year.
PPC says it has entered into a standby underwriting agreement over its proposed rights offer of R4bn with a syndicate of banks.
Building activity with regard to new private sector-financed housing in South Africa saw some improvement in the second quarter of 2015, based on data published by Statistics South Africa.
The South African Reserve Bank’s Monetary Policy Committee (MPC) raised the key monetary policy interest rate – the repurchase, or repo rate – by 25 basis points from 5,75% to 6% per annum.
Growth in the planning phase of residential building activity continues, but the construction phase contracts unabatedly.
The Reserve Bank's Monetary Policy Committee (MPC) has left the repo rate unchanged at 5.5% per annum.
Confidence levels in the construction and building industry rise to 52 points in the first quarter of 2014 from 48 in the fourth quarter of 2013.