Kernel, a large Ukrainian agrarian group, has placed $500 million with a yield of 8.875% per annum, the company's press service has told Interfax-Ukraine.

The press service said that initially the yield for securities was assessed at 9.25-9.5% per annum.

"This is a symbolic placement both for Kernel and Ukraine in general. It again opens access to Ukrainian issuers to the international capital market after a three-year pause. In addition, the successful placement of eurobonds confirms good credit quality of Kernel and trust of investor society to the company," the press service said.

Kernel's debut eurobonds are due on January 31, 2022. The coupon rate is set at 8.75% per annum.

According to Bloomberg, the yield of Ukraine's eurobonds due before September 1, 2021 is 8.178% per annum and due before September 1, 2022 – 8.2% per annum.

The securities are secured by the group's subsidiaries Inerco Trade SA (Switzerland), Restomon Limited (the British Virgin Islands), Etrecom Investments Limited (Cyprus), Estron Corporation Limited (Cyprus), Russian Oils Trading Company (Russia), Agropolis LLC (Ternopil region), Arshytsia agricultural firm (Poltava region), Khliborob agricultural firm (Kirovohrad region), Bandursky Elevator LLC (Mykolaiv region), the Black Sea Industries oil extraction plant (Odesa region), Chorna Kamyanka LLC and Druzhba-Nova LLC (both based in Chernihiv region), Enselko Agro (Khmelnytsky region), Hovtva (Poltava region), and Kononivsky Elevator (Cherkasy region).

As expected, the eurobonds will be listed on the Irish Stock Exchange (ISE).

JP Morgan and ING Bank organized the issue.

Kernel is the world's largest producer and exporter of sunflower oil. It is the leading manufacturer and supplier of agricultural products from the Black Sea region to world markets.

Kernel's share of the world's sunflower oil production is about 8%.