Sugar Bond Set for Debut

Grupo Virgolino de Oliveira (GVO) is set to price its debut dollar bond today. The Brazilian sugar producer and largest member of the Copersucar cooperative has set guidance of 10.25%-10.50%. The B3 rated 2018 NC4 is expected to raise $250m after finishing investor meetings Thursday. BTG Pactual, Credit Suisse, Itau and Santander are managing the sale. GVO is a member of the Copersucar cooperative. The investor 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.