Ukrlandfarming, one of the largest Ukrainian agroholdings, has additionally placed five-year eurobonds worth $150 million at the initial rate of 10.875 percent per annum and brought the volume of its debut eurobond issue to $425 million, Board Chairman and the owner of the company, Oleh Bakhmatiuk, has said.
“During the additional placement, lots of funds of investors from the Middle East were raised, which is a new trend for eurobond issues,” he told Interfax-Ukraine on Tuesday.
He said that this confirms the interest of Middle East investors both in the Ukrainian agrarian sector as a whole and in Ukrlandfarming and its subsidiary Avangard, a large egg producer in Ukraine, which actively promotes its products on the said markets.
As reported, the debut $275 million issue of these securities was made in March this year at 10.875% per annum. The lead managers were Deutsche Bank, Sberbank CIB and Citigroup. At the end of March, Bakhmatiuk told reporters there was a possibility of an additional offering to a target level of $500 million to provide funding for capital investment and a debt extension from three to five years. The businessman said the main reason for the lower-than-planned volume of attraction was the reaction of investors to the situation in Cyprus, as UkrLandFarming PLC holding company is a resident of that country.
Ukrlandfarming hired Deutsche Bank and Sberbank for the additional placement of eurobonds.
Ukrlandfarming, according to the company, is the largest agricultural holding in Eurasia. It is engaged in cultivation of grains, production of eggs and egg products, sugar, cattle breeding, distribution of equipment, fertilizers and seeds.
