GVO Bond Shoots for 10%

Grupo Virgolino de Oliveira (GVO) is whispering a yield of low to mid 10%s for a new 2018 NC4 debut dollar bond, expected this week. A $250m bond is expected. B3 rated GVO is scheduled to finish its roadshow Thursday. BTG Pactual, Credit Suisse, Itau and Santander are managing the sale. “It’s not often you see a double-digit yield from Brazil,” says a London-based EM investor looking at the Brazilian sugar producer. GVO is a member of the Copersucar cooperative. The investors says this helps mitigate concerns about price volatility and small issuer liquidity in a commodity exporting business. Copersucar acts as a guaranteed buyer for co-op members’ production, reducing some of the risks of the commodities market. The company was founded in 1921 and operates 4 mills in Sao Paulo state.