MHP announces additional amounts of 10.5% notes due in 2029 worth $100 mln

MHP, an international food and agrotechnology company, has announced the launch of an additional placement of eurobonds maturing in 2029 with an annual interest rate of 10.5%, totaling $100 million.

The additional placement is being carried out on top of the $450 million issued on January 28, 2026, in response to strong investor demand and favorable market opportunities, the company said in a statement on Tuesday.

According to MHP, this is a clear signal of long-term confidence from international investors and financial institutions in the resilience of MHP's business model, the quality of its corporate governance, and the company's ability to operate amid unprecedented challenges.

The funds raised through the additional placement, together with proceeds from the initial issuance of the 2029 eurobonds, will be used to finance the tender offer and redemption of the entire issue of the 2026 eurobonds with a 6.95% coupon and maturity in early April 2026, as well as to cover costs related to the bond placement.

"The Offering replaces the use of $100 million of the group's internal cash that was originally earmarked for partial repayment of the 2026 Notes. The retained cash, including any proceeds in excess of $100 million, will instead be primarily kept outside of Ukraine and allocated to the group's future investment initiatives, including capital expenditures and ongoing operational needs," the statement also said.

According to data from the Frankfurt Stock Exchange, MHP's new 2029 eurobonds on Tuesday rose by 0.07% and are trading above par at 102.41%.

JP Morgan and Dragon Capital acted as joint lead managers for the issuance.

The company's shares on the London Stock Exchange rose by 0.23% on Tuesday to $8.76 per share.

As previously reported, during the early phase of the tender offer announced on January 15 to repurchase $550 million worth of eurobonds maturing on April 3 this year, MHP received bids to repurchase bonds totaling $330.786 million, or 60.01%.

The tender offer is set to finally close at 11:59 p.m. (New York time) on February 12, with the buyback of all remaining 2026 eurobonds scheduled for February 18.

The repurchase price for the 6.95% eurobonds maturing in 2026 was set at par value.

MHP is the largest poultry producer in Ukraine. It farms 360,000 hectares across 12 regions of Ukraine and is engaged in the production of grain, oil, and meat products, which it exports to more than 80 countries.

The agroholding's production facilities are located in Ukraine and Southeastern Europe, and it also operates subsidiaries in the Netherlands, the United Kingdom, the UAE, Saudi Arabia, and EU countries.