Page 46 - UKRRptOct18

8.4 Fixed income
8.4.1 Fixed income - bond news
The City of Kyiv (CITKIE) completed on September 4 the exchange of its remaining $101.15mn in Eurobonds maturing in November 2015 for new notes with a 7.5% coupon maturing on December 15, 2022, the city reported on September 7. The new Eurobonds will be issued for $115.07mn, according to the finance.liga.net news site. Recall, the holders of $148.8mn of CITKIE’15 notes voted to exchange them into 117.4mn Ukrainian government Eurobonds (50/50 maturing in September 2019 and September 2020, respectively) as well as $36.9mn in Ukraine’s GDP warrants. The exchange took place in December 2015. Those who failed to vote in favor of the exchange retained their 2015 notes. Ukraine's parliament allowed the Kyiv city government to avoid any payment on the remaining notes until a restructuring deal is reached.
Ukraine's largest poultry producer MHP proposed amendments to covenants to its April 2020 Eurobond ($76.4mn outstanding) and will make a consent payment in amount of a 0.5% principal amount, according to the company’s September 20 note. The amendments will harmonize the covenants with other two bonds, maturing in 2024 and 2026. The company offers to make four amendments: removing the limits to a $50mn credit facility to finance operations with sunflower seeds and sunflower oil; as well as removing limits on permitted liens that secure the financing of PP&E construction, improvement and acquisition. The other two amendments will clarify the terms "Consolidated Total Assets" and "IFRS." Also, the company’s announcement pointed that such changes will "enable to finance all of its crops and products consistent with its current business model, and proceed with select acquisitions in line with the company’s strategy", according to Kyiv-based brokerage Concorde Capital.
46 UKRAINE Country Report October 2018 www.intellinews.com