Fortress Issues Landmark Zaronia Linked Note Signalling Shift From Jibar In South African Markets

Source: Supplied. Chief financial officer at Fortress, Ian Vorster.

The issuance, under its Domestic Medium-Term Note programme, is among the first to reference the new Zaronia benchmark, signalling a shift away from Jibar.

The deal not only strengthens Fortress’ funding strategy but also highlights growing momentum in the transition to a new interest-rate framework in South Africa’s capital markets.

The Note was issued at a rate of Zaronia plus 161 bps, which incorporates the Credit Adjustment Spread required to translate between the two reference rates, economically equivalent to Jibar plus 145 bps.

This makes the Note the first Zaronia-referenced instrument issued by a JSE-listed property counter, reflecting Fortress’ proactive approach to evolving market conventions.

Investor confidence builds

This placement follows Fortress’ successful R1.056bn DMTN issuance in March 2026, which attracted total bids of R3.749bn and demonstrated the depth of investor demand. The current issuance continues that momentum, reflecting sustained confidence in Fortress’ credit profile and its strategic approach to capital markets.

Commenting on the issuance, chief financial officer Ian Vorster said: “Following our successful bond auction in March, the placement of an attractively priced seven-year unsecured note is a further demonstration of investor confidence in Fortress and in South Africa’s credit market.

"We are also proud to be the first property counter to issue a Zaronia-referenced Note, reflecting our commitment to staying ahead of market developments as South Africa transitions its benchmark-rate framework.”

Proceeds from the issuance will be used to refinance existing debt and for general corporate purposes.

The transaction supports Fortress’ ongoing funding strategy to optimise its cost of capital, diversify funding sources, and maintain a well-managed debt-maturity profile. The increased exposure to the debt-capital market relative to Fortress’ total debt-facility position is supported by the favourable pricing and longer tenor.

Fortress remains committed to prudent financial management and to accessing capital markets efficiently to support its portfolio and growth objectives.