Standard Bank arranges landmark ZAR2.85bn bond issuance for Bidvest

This milestone in the ZAR bond market highlights Bidvest’s continued growth and achievement of strategic funding objectives with Standard Bank’s expertise.

Bidvest has long been recognised as one of South Africa’s leading industrial groups with a reputation for growth, stability, and strategic expansion. Standard Bank’s Debt Capital Market team, leveraging extensive expertise and well-established relationships with major investors, partnered with Bidvest to bring this landmark bond issuance to market.

The bank acted in its capacity as arranger for this issuance and assisted Bidvest in raising R2.85bn through a well-oversubscribed bond auction. The transaction attracted R7.74bn in bids, setting a record as the largest corporate bond auction in the ZAR bond market over the past five years. Bidvest’s bonds cleared at exceptional pricing levels, marking the tightest in the company’s history, a testament to Bidvest’s sound business strategy and investor confidence.

In executing this transaction, the bank advised on critical factors such as timing to market, tranches on offer, issuance volume and balancing of pricing dynamics. The issuance was split across four tranches, with the seven-year note being the longest dated bond Bidvest has issued to date.

This record-breaking bond issuance not only strengthens Bidvest's financial position but also strategically aligns with its long-term funding objectives. By rebalancing its funding to closer align to its revenue sources, and by extending its debt maturity profile at favourable pricing, Bidvest has effectively positioned itself for continued growth and success.

Founded in 1988 and listed on the JSE, Bidvest compromises over 250 individual businesses and employs more than 130 000 people across South Africa, the United Kingdom (UK), Republic of Ireland (Ireland), Spain, Australia and Singapore.

With a focus on providing goods and services through a business-to-business (B2B) philosophy, Bidvest has cultivated a diverse portfolio operating across two key segments: business services, and trading and distribution. This diversified approach is a core strength, enabling their businesses to act as catalysts for value creation across a wide range of industries.

By partnering with us, Bidvest successfully raised funding to support its expansion and operational goals while reinforcing its position within the fixed income market. This transaction showcases the power of collaboration and strategic planning in achieving multiple funding objectives simultaneously.

This also demonstrates our dedication to providing innovative financial solutions that drive growth for our clients and enhance Africa’s corporate finance landscape.