July 13, 2011


Agroton to issue three-year bonds for $50 million at 12.5%



Ukrainian agricultural holding Agroton Public Limited is planning to issue senior unsecured bonds for US$50 million on July 14.


The securities fall due in 3 years and have a yield of 12.5% per annum.


The funds raised will be channeled to "refinance debts, acquire and build elevators, expand the existing land bank, purchase farm machinery, and for general corporate purposes", according to the company's statement posted on the website of the Warsaw Stock Exchange.


Lead managers of the issue are Dragon Capital (Cyprus), UBS, and VTB Capital. According to the statement, rating agencies S&P and Fitch assigned a rating of "B-" to the planned issue.


Agroton is a multi-sector vertically-integrated producer of agricultural products in eastern Ukraine. The main activity of the group is growing, as well as processing, storage and sale of sunflowers and wheat.

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