PhosAgro Successfully Launches New Placement of Yuan-Denominated Bonds
Moscow – PJSC PhosAgro (Moscow Exchange, LSE: PHOR) (“PhosAgro”, the “Company”), one of the world’s leading vertically integrated phosphate-based fertilizer producers, has successfully completed bookbuilding for the placement of an issue of CNY 1 billion in BO-02-02 series bonds with a maturity period of 1.5 years. The bonds have a fixed coupon rate of 10.4% per annum, with monthly interest payments.
The placement marks the first issue of yuan-denominated bonds in the Russian market since June 2024. Thanks to strong investor demand, the coupon rate was revised downward three times during the bookbuilding process, from an initial target of 11.0% per annum to the final rate of 10.4% per annum. The bonds were purchased primarily by institutional and private investors. Trading on Moscow Exchange is expected to begin on 18 February 2024.
The ACRA rating agency has assigned the bond issue its expected highest-possible rating of eAAA(RU).
“The successful placement of this new yuan-denominated bond issue, with a coupon rate of 10.4% per annum, is a landmark event for PhosAgro and a testament to investors’ high level of confidence in our company. In the current market environment, we were able to secure financing on attractive terms, which underscores our resilience and the effectiveness of our financial strategy. We will continue to further optimise our loan portfolio and to strengthen our position in the debt market,” said Alexander Sharabaika, PJSC PhosAgro’s Deputy CEO for Finance and International Projects.
The placement marks the first issue of yuan-denominated bonds in the Russian market since June 2024. Thanks to strong investor demand, the coupon rate was revised downward three times during the bookbuilding process, from an initial target of 11.0% per annum to the final rate of 10.4% per annum. The bonds were purchased primarily by institutional and private investors. Trading on Moscow Exchange is expected to begin on 18 February 2024.
The ACRA rating agency has assigned the bond issue its expected highest-possible rating of eAAA(RU).
“The successful placement of this new yuan-denominated bond issue, with a coupon rate of 10.4% per annum, is a landmark event for PhosAgro and a testament to investors’ high level of confidence in our company. In the current market environment, we were able to secure financing on attractive terms, which underscores our resilience and the effectiveness of our financial strategy. We will continue to further optimise our loan portfolio and to strengthen our position in the debt market,” said Alexander Sharabaika, PJSC PhosAgro’s Deputy CEO for Finance and International Projects.