RMB successfully markets a capital market solution for Bidvest’s Inaugural US$800 Million bond

Client challenge

Bidvest is a leading South African services, trading and distribution group founded in 1988. They operate with a broad product offering and have growth ambitions, both organic and acquisitive in the local and select international markets.

Bidvest were looking to refinance their hard-currency bridge facility for the acquisition of PHS and diversify its debt funding providers. Due to the pandemic, when indicative credit spreads widened considerably, this plan was postponed.

RMB's solution

RMB was appointed as Joint Bookrunner and acted as a trusted advisor to assist Bidvest to navigate capital markets. The transaction was Bidvest’s inaugural hard-currency bond issuance and they successfully accessed US$800 million (ZAR12 billion) in the placement. This was the lowest coupon of any US$-denominated corporate transaction on the continent, representing a very strong outcome for Bidvest.

Client enablement

The transaction was three times subscribed, showing robust support from the international investor community following the multi-day virtual deal roadshow. The bond will enable Bidvest to repay the group’s revolving credit facilities, repay some of the group’s local currency bonds and to provide funding for future acquisitions.