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OJSC PhosAgro: PhosAgro Prices Seven-Year USD 500 Million Eurobond Issue with a Coupon of 2.6%, Setting new Benchmark for Russian Non-State Corporate Borrowers With Same Tenor

·8-min read

OJSC PhosAgro (PHOR)
10-Sep-2021 / 10:09 MSK
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

For Immediate Release

10 September 2021

 

 

NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE IN THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, THE RUSSIAN FEDERATION OR ANY OTHER JURISDICTION WHERE SUCH ACTIONS WOULD BE UNLAWFUL

 

PhosAgro Prices Seven-Year USD 500 Million Eurobond Issue with a Coupon of 2.6%, Setting new Benchmark for Russian Non-State Corporate Borrowers With Same Tenor

 

Moscow - PhosAgro (the "Company"; Moscow Exchange, LSE: PHOR), one of the world's leading vertically integrated producers of phosphate-based fertilizers, has successfully priced a USD 500 million seven-year (the longest-tenor issue by the Company) Eurobond issue with a coupon of 2.6% to be listed on Euronext Dublin.

 

The Company priced the issue on 9 September 2021 and the settlement is expected to take place on 16 September 2021.

 

PhosAgro CEO Andrey Guryev said: "We are delighted that the market has once again shown interest in PhosAgro's bond issue. The pricing process was a success and we closed the order book at a record low coupon rate for a seven-year Eurobond by a non-state Russian issuer. Significant demand from investors from all over the world indicates that there is strong interest in PhosAgro's corporate debt and that the Company is viewed as reliable. Our efficient and flexible business model, ambitious development strategy and established history with the capital markets were all important factors in attracting this financing. We plan to use the funds raised from the bond placement for general corporate purposes, as well as loan portfolio refinancing to maintain PhosAgro's net debt/EBITDA ratio at a comfortable level."

 

PhosAgro Board of Directors Chairman Xavier Rolet, who served as CEO of the London Stock Exchange from 2009 to 2017, said: "We are very pleased to report that the Company's track record of earnings growth and financial stability powered by strong demand for its sustainable, eco-efficient fertilizers that are free from harmful concentrations of cadmium and other heavy metals hazardous to human health and soils, elicited strong demand for its Eurobond issue from a wide range of Russian and international investors."

 

During the book building process, demand for PhosAgro's new Eurobond issue significantly outstripped the planned offering size.

 

The contemplated Eurobond issue is expected to be rated BBB- by Standard & Poor's, Baa3 by Moody's and a BBB-(EXP) by Fitch Ratings, which is consistent with the Company's corporate credit ratings.

 

BofA Securities, Citi, Gazprombank, J.P. Morgan, RBI, Renaissance Capital, SberCIB, UniCredit and VTB Capital acted as joint bookrunners for the transaction.

 

Contacts

 

PJSC PhosAgro

Andrey Serov, Head of the Investor Relations Department

+7 495 231 2747 ext. ext. 2183

ir@phosagro.ru

 

Timur Belov, Press Officer

+7 495 231 2747 ext. 2652

pr@phosagro.ru

 

EM

Sam VanDerlip

vanderlip@em-comms.com

+44 207 002 7859

 

 

About PhosAgro

 

PhosAgro (www.phosagro.com) is one of the world's leading vertically integrated phosphate-based fertilizer producers in terms of production volumes of phosphate-based fertilizers and high-grade phosphate rock with a P2O5 content of 39% and higher. PhosAgro's environmentally friendly fertilizers stand out for their high efficiency, and they do not lead to the contamination of soils with heavy metals.

 

The Company is the largest phosphate-based fertilizer producer in Europe (by total combined capacity for DAP/MAP/NP/NPK/NPS), the largest producer of high-grade phosphate rock with a P2O5 content of 39%, a top-three producer of MAP/DAP globally, one of the leading producers of feed phosphates (MCP) in Europe, and the only producer in Russia, and Russia's only producer of nepheline concentrate (according to the RAFP).

 

PhosAgro's main products include phosphate rock, more than 50 grades of fertilizers, feed phosphates, ammonia, and sodium tripolyphosphate, which are used by customers in 102 countries spanning all of the world's inhabited continents. The Company's priority markets outside of Russia and the CIS are Latin America, Europe and Asia.

 

PhosAgro's shares are traded on the Moscow Exchange, and global depositary receipts (GDRs) for shares trade on the London Stock Exchange (under the ticker PHOR). Since 1 June 2016, the Company's GDRs have been included in the MSCI Russia and MSCI Emerging Markets indexes.

 

This press release is not for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any State of the United States and the District of Columbia), Canada, Japan or Australia. This press release is not an offer of securities for sale in the United States. The securities to which this press release relates have not been registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States or to, or for the account or benefit of, US persons absent registration or an exemption from registration or in a transaction not subject to the registration requirements under the Securities Act. There will be no public offering of the securities in the United States.

 

This press release is not an invitation nor is it intended to be an inducement to engage in investment activity for the purpose of section 21 of the Financial Services and Markets Act 2000, as amended (the "FSMA"). To the extent that this press release does constitute an inducement to engage in any investment activity included within this press release, it is directed at and is only being distributed (A) in member states of the European Economic Area to persons who are qualified investors within the meaning of Article 2(E) of the Prospectus Regulation (EU) 2017/1129 (the "Prospectus Regulation")); (B) in the United Kingdom, to persons who (i) have professional experience in matters related to investments and who are "investment professionals" within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the "Financial Promotion Order") or are persons who fall within Articles 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc.") of the Financial Promotion Order, (ii) any other persons to whom this information may otherwise lawfully be directed (all such persons together being referred to as "relevant persons"). No other person should act or rely on this press release and persons distributing this press release must satisfy themselves that it is lawful to do so. By accepting this press release you represent and agree that you are a relevant person and Qualified Investor if in the United Kingdom and a Qualified Investor if in any member state of the European Economic Area.

 

This press release is an advertisement for the purposes of the Prospectus Regulation. The relevant listing particulars will be available on the Irish Stock Exchange plc trading as Euronext Dublin.

UK MiFIR professionals/ECPs-only - Manufacturer target market (UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels).

MiFID II professionals/ECPs-only - Manufacturer target market (MiFID II product governance) is eligible counterparties and professional clients only (all distribution channels).

No PRIIPs key information document (KID) has been prepared, since this communication will not be distributed to retail investors of the European Economic Area.

No UK PRIIPs key information document (KID) has been prepared, since this communication will not be distributed to retail investors of the United Kingdom.

 

This press release and the information herein are not an advertisement of securities in the Russian Federation, and are not an offer, or an invitation to make offers, to purchase, sell, exchange or transfer any securities in the Russian Federation or to or for the benefit of any Russian person or entity. This press release and the information herein are not intended for any persons in the Russian Federation who are not "qualified investors" within the meaning of Article 51.2 of the Federal Law No. 39-FZ "On the Securities Market" dated 22 April 1996, as amended (the "Russian QIs") and must not be distributed or circulated into Russia or made available in Russia to any persons who are not Russian QIs, unless and to the extent they are otherwise permitted to access such information under Russian law. The notes (the "Notes") have not been and will not be registered in Russia. The Notes have not been admitted to placement or public circulation in the Russian Federation and may not be sold in the Russian Federation in any way other than to Russian QIs in a manner that does not constitute "placement" or "public circulation" (as defined under Russian law) of the Notes in the Russian Federation. Information contained herein may not correspond to the risk profile of a particular investor, does not take in account one's personal preferences and expectations on risk and/or profitability and does not constitute an individual investment recommendation as defined under Russian law.

 

 

 

 

 


ISIN:

US71922G2093

Category Code:

IOD

TIDM:

PHOR

LEI Code:

25340053KRUNNYUWF472

OAM Categories:

2.2. Inside information

Sequence No.:

121893

EQS News ID:

1232574


 

End of Announcement

EQS News Service

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