Agroton to issue three-year notes worth $50 m in one or two months

Kyiv, October 22 (Interfax-Ukraine) – Agroton agricultural holding (Luhansk) is completing preparations for an issue of three-year notes worth $50 million, which is to be performed in one to two months, Deputy Director General of Phoenix Capital investment company Andriy Supranonok has said.

"The market is quite busy, which will help ensure low profitability for the issuer and efficiently refinance existing debts," he said at a press conference in Kyiv, dedicated to a company's IPO on the Warsaw Stock Exchange, the lead manager of which was Phoenix Capital.

Supranonok noted that currently the company is in talks with two major banks - one western bank and one Russian bank - on their possible involvement in the note placement to help Phoenix Capital.

According to him, the loans will be taken either in the form of eurobonds or CLN (Credit Linked Note), as the issue of eurobonds worth $50 million could require excess transaction costs.

Supranonok noted that, taking into account the IPO and note placement, Agroton will be provided with financial resources for activity and development two or three years before the land market is set up in Ukraine.

In early October, Agroton reported that the estimated yield of the notes would be about 11% per annum.