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8.5.1 Fixed income - bond news
Ukraine’s largest metallurgical company M etinvest has placed $500mn worth of 10-year Eurobonds at 7.95% per annum and €300 worth of 5-year Eurobonds at 5.75% per annum, reports Interfax-Ukraine. Total demand was $1.1bn for the equivalent of $828mn of bonds. Before a weeklong international roadshow that ended Friday, Metinvest said: “The purpose of the offer is proactive management of debt repayment, an extension of debt repayment terms and reduction of refinancing risks.”
MHP prices 10Y bond at 6.25%, media report Ukraine’s leading poultry producer MHP (MHPSA, MHPC LI) completed the placement of its new 10-year Eurobonds for $350mn, Interfax-Ukraine reported on September 12 citing its own sources. According to the source, the coupon rate for the new bond was set at 6.25%. In other news, Fitch Ratings reported on September 10 that it has upgraded MHP’s issuer default rating to “B+” (from “B”) with a stable outlook. The agency related the upgrade to its recent increase of the Ukrainian sovereign rating (to “B” with a positive outlook), thus keeping the company’s rating one notch above the sovereign. Fitch highlighted that MHP’s business and financial profile corresponds to “BB-“ rating category, but the ultimate rating is constrained by the operating environment in Ukraine.
Ukraine's largest poultry producer MHP is going to redeem its Eurobonds maturing in April 2020 (amount outstanding: $79.4mn in nominal), according to the company’s September 19 statement. The Eurobond redemption date will be October 21. The company’s note redemption will be in accordance with the terms of the indenture dated as of April 2, 2013. Andriy Perederey at Kyiv-based brokerage Concorde Capital wrote in a note on September 20 that it looks logical to redeem the illiquid 2020 bond after the new 2029 bond placement. "In our view, the company will redeem its 2020 bonds in accordance with the prospectus's optional redemption process and
55 UKRAINE Country Report October 2019 www.intellinews.com
