Dragon Capital Successfully Places US$50m Eurobonds of Agroton
Kyiv, 15 July 2011 — Agroton Group (AGT:WS), one of the largest agricultural producers in eastern Ukraine, has successfully placed its debut three-year US$50m Eurobond issue. Dragon Capital, UBS and VTB Capital acted as Lead Managers and Bookrunners on the deal.
The issue was priced at par with a 12.5% coupon, payable semiannually. The senior unsecured notes were issued in accordance with Regulation S and are listed on the London Stock Exchange.
Agroton’s debute issue follows strong interest from international investors in the Ukrainian agricultural sector and robust growth in Ukraine’s leading agricultural concerns. Agroton’s focused strategy and conservative debt financing approach allowed for successful placement despite recent challenging market conditions, experiencing strong demand from European investors.
“We are pleased with the results of Agroton’s debute placement. The bond enables Agroton to diversify its capital base and build on the momentum of Ukraine’s expanding agricultural sector. The strong demand we have registered demonstrates the market’s appreciation of this new instrument providing exposure to a major, growing agricultural producer in Ukraine”, – commented Hal Rilling, Managing Director, Head of DCM, Dragon Capital.
The proceeds from the Eurobond issue will be used primarily to redeem the Group’s existing bank debt, fund the construction of new grain storage facilities, acquire agricultural machinery, and to expand the Group’s existing land bank.
Agroton Group (www.agroton.com.ua) is one of the largest diversified vertically integrated agricultural producers in Ukraine. The Group’s core business is the cultivation, processing, storage and sale of grain, mainly sunflower and wheat. The Group also handles production and sale of livestock as well as food production. Agroton has been listed on the Warsaw Stock Exchange since November 2010.
Since 2001 Agroton has tripled the size of its land bank, and it now manages 134,000 hectares of black earth land. The Group operates storage facilities with a capacity of about 235,000 metric tons. The current capacity of Agroton’s grain elevators makes it the largest grain elevator operator in the Luhansk region. Agroton is the largest poultry producer in the Luhansk region, raising about 3 million chickens annually. The company also has about 4,500 head of dairy cows, making it the fifth-largest milk producer in Ukraine.
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