For Immediate Release
17 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NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE IN THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, THE RUSSIAN FEDERATION OR ANY OTHER JURISDICTION WHERE SUCH ACTIONS WOULD BE UNLAWFUL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 Places 7-Year Bonds Worth USD 500 Million with Record Low Coupon of 2.6%
Moscow - PhosAgro (Moscow Exchange, LSE: PHOR), one of the world's leading vertically integrated phosphate-based fertilizer producers, has completed the placement of seven-year bonds worth USD 500 million with a coupon of 2.6%.
PhosAgro CEO Andrey Guryev said: "I am pleased to announce another success for PhosAgro in capital markets: the successful completion of the placement of seven-year bonds worth USD 500 million at a record low rate of 2.6% per annum. We saw strong demand from a wide range of investors: the coupon ended up 65 basis points below the upper limit of 3.25% provided in the initial guidance; oversubscription greatly exceeded the volume of the placement.
"I would especially like to highlight the wide geography of demand for PhosAgro's Eurobonds. Around 90% of the issue was acquired by foreign institutional investors: more than 40% from continental Europe, about 25% from the United Kingdom, 16% from the United States and 6% from Asia.
"Investors once again demonstrated their high level of confidence in PhosAgro, backed by our operating and financial performance, ambitious growth strategy and focus on sustainability. PhosAgro is steadily increasing its production of eco-efficient mineral fertilizers that do not contain concentrations of cadmium and other toxic substances that are hazardous to human health and soils. At the same time, our actions are in line with general trends in the Russian and international markets: the introduction of eco-labelling for mineral fertilizers with improved environmental performance in Russia and voluntary eco-labelling for benchmark-quality fertilizers and for fertilizers in line with restrictions on cadmium content in food within the EU. We are pleased to see that, by showing strong interest in the Company and, in particular, its new Eurobond issue, investors have a positive view of PhosAgro's food security solutions and see that they are in line with the market's overall ESG agenda."
The Company will use the funds raised for general corporate purposes and to refinance its borrowings, keeping its net debt / EBITDA ratio at a comfortable level.
PhosAgro's Eurobond issue will be assigned credit ratings of BBB- from Standard & Poor's, Baa3 from Moody's and BBB-(EXP) from Fitch Ratings, which corresponds to the Company's corporate credit ratings.
The joint bookrunners for the issue were BofA Securities, Citi, Gazprombank, J.P. Morgan, RBI, Renaissance Capital, SberCIB, UniCredit and VTB Capital.
Andrey Serov, Head of the Investor Relations Department
+7 495 232 9689 ext. 2187
Timur Belov, Press Officer
+7 495 232 9689 ext. 2652
+44 207 002 7859
+7 499 918 3134
PhosAgro (www.phosagro.ru) 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 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.
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