Economy

MHP studying possibility of refinancing 2020 eurobonds

Myronivsky Hliboproduct (MHP) is currently studying the situation in the market for the possible refinancing of eurobonds with a circulation term of up to 2020, financial director of the holding Viktoria Kapeliushna has reported.

"We have approximately $500 mln eurobonds with maturity in 2020 and we are thinking about possible refinancing. It will depend on the situation in the financial market," she said during a conference call with investors.

"We would like to provide a transaction to extend the maturity of our current eurobonds," she said.

How quickly the company will be able to come up with the appropriate offer will depend on the situation in the external debt market, she added.

As reported, MHP on the results of a tender for the purchase of eurobonds for $750 million with maturity on April 2, 2020, held in May 2017, received proposals to purchase securities for $245.2 million.

After redemption, the volume of the issue in circulation decreased to $504.8 million.

At the same time, the holding issued new eurobonds worth $500 million with maturity up to 2024 and a coupon rate of 7.75% per annum.

These two issues of eurobonds account for more than 86% of the company's gross debt, which as of December 31, 2017 amounted to $1.157 billion.

Myronivsky Hliboproduct is the largest poultry producer in Ukraine. It is also engaged in production of cereals, sunflower oil, and meat.

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