International food and agro-tech company MHP has launched the sale of a new Eurobond issue maturing in 2029, seeking to refinance debt due next year, Interfax-Ukraine reported on January 21.
The company, Ukraine’s largest poultry producer, last week announced plans to buy back its $550mn Eurobonds maturing in April 2026 and to fund the operation through a new bond issue. According to Interfax-Ukraine, the initial yield guidance for the new notes is being discussed at around 11% per annum.
JP Morgan SE, based in Frankfurt am Main, and Kyiv-based investment firm Dragon Capital are acting as dealer managers on the transaction. Information about the launch of the sale was also reported by Bloomberg, citing sources familiar with the matter.
If successfully completed, the deal would mark the first new Eurobond issuance by a Ukrainian corporate issuer since Russia launched its invasion of Ukraine in February 2022, excluding bond issues conducted as part of debt restructurings.
MHP has said the buyback of its 2026 Eurobonds is conditional on the outcome of the new issuance. The company aims to raise at least $450mn from the sale of the 2029 notes. Combined with around $100mn of existing cash, this would be sufficient to fully redeem the outstanding 2026 bonds, which carry a coupon of 6.95% per annum.
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