Vivo Energy’s first-ever US dollar bond is causing stark disagreement on how it stacks up to its closest comparable, fellow Africa-exposed fuel distributor Puma Energy. Three buysiders polled by Debtwire argued that Vivo’s lower leverage, higher rating and high-profile branding warranted pricing flat or cheap to Puma, whereas another three argued the opposite, given Vivo’s debut status, smaller issuance size and weaker geographic diversification.
Vivo will test investor appetite for pure African exposure at a time where emerging market sentiment is softening, to help refinance USD 485m in loan facilities with a 5NC2 or 7NC3 bond. It finishes its roadshow today (6 June), after visiting the UK and the US but having cancelled a Frankfurt breakfast, according to a seventh buysider who was hoping to attend.
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