Rand Merchant Bank acted as Joint Bookrunner for The Bidvest Group (UK) Plc’s (“Bidvest”) inaugural $800m (ZAR12 billion) bond issuance in the international debt capital markets.
The 5-Year Non-Call 2 bond is listed on the London Stock Exchange, was three times subscribed (with a final orderbook of $2.4bn) and cleared at a yield of 3.625%, which is 50bps tighter than the Initial Price Thoughts (“IPTs”) of 4.125%.
“The coupon is the lowest of any USD-denominated corporate transaction on the continent, highlighting a very good outcome for Bidvest,” said Denzil Ramen, Co-Head of Debt & Trade Solutions at Rand Merchant Bank.
Fund managers took up 81% of the issue, followed by pension funds and insurers at 9%, while hedge funds and banks each took up 5%. UK-based investors took up the largest portion of the bonds at 58% of the issue, while US investors took up 21% and South African investors 6%.
Mark Steyn, Chief Financial Officer from Bidvest said: “The success of the capital raise underlined the group’s strong balance sheet, business diversification, focus on cash generation and the ongoing demand for quality corporate paper in the global capital markets.”
Bidvest will use the funds to repay the group’s revolving credit facilities, repay some of the group’s local currency bonds and to provide funding for future acquisitions.