Ukraine's MHP places $450 mln in 2029 Eurobonds at 10.5%, stocks up 10.2%

MOSCOW. Jan 28 (Interfax) - Leading Ukrainian and international food and agricultural company MHP has completed the placement of the $450 million aggregate principal amount of 10.5% notes due in 2029, marking the first Eurobond issuance by a company from Ukraine since the start of the crisis in February 2022, Ukrainian media reported.

"MHP SE intends to use the proceeds of the notes to fund the tender offer and redemption of the entire $550 million outstanding aggregate principal amount of MHP Lux S.A.'s 6.95% notes due 2026," media outlets quoted MHP as saying in a statement on the London Stock Exchange (LSE) on Wednesday.

The new bonds have again been issued by subsidiary MHP Lux S.A., a company incorporated in Luxembourg, and are guaranteed by MHP SE and some of its subsidiaries in Ukraine. The notes are rated CCC+ by S&P.

Any 2026 notes not tendered and repurchased for redemption are expected to be redeemed at par pursuant to the notice of redemption issued concurrently with the tender offer on February 18, 2026, MHP said.

According to the LSE, MHP's stocks rose 10.19% to $9.08 per share since the start of trading on Wednesday, the highest price since early 2020. Thus, the company's market cap is around $914 million.

As reported, MHP announced last week that it planned to buy back $550 million in its Eurobonds maturing in April 2026 and to place new Eurobonds due in 2029 to refinance this repurchase. The yield proposed initially for the issue was about 11%, according to sources.

JP Morgan SE (Frankfurt am Main, Germany) and Dragon Capital (Kiev, Ukraine) act as dealer managers.

According to the offer, the repurchase price is equal to the par plus accrued interest. Two deadlines are proposed: an early tender deadline of 5:00 p.m. New York City time on January 29 and an expiration deadline of 11:59 p.m. New York City time on February 12, 2026. These deadlines differ in settlement times, but the repurchase price remains the same.

"The purpose of the Tender Offer is to proactively and prudently address the Group's indebtedness under the Notes in advance of their maturity on April 3, 2026 and associated operational and financial risks, thereby facilitating Noteholders' seamless rollover into the New Notes Offering and the extension of their credit exposure," MHP said.

MHP's Eurobonds issued through MHP Lux S.A. and maturing on April 3, 2026 rose 0.12% to 95.31% of par on January 15, when the repurchase plans were announced, according to the Frankfurt Stock Exchange, which is a maximum value since the end of 2021, while its bonds maturing in 2029 rose 0.10% to 86.17%. On January 28, 2026, they rose by another 0.03% to 97.31% of par and by 1.78% to 88.87% of par, respectively.

MHP is the largest chicken producer in Ukraine. It cultivates 360,000 hectares of farmland in 12 regions of Ukraine. It produces grain, vegetable oil, and meat products, which it exports to more than 80 countries.

The holding's production assets are based in Ukraine and Southeast Europe, and it also has subsidiaries in the Netherlands, the United Kingdom, the United Arab Emirates, Saudi Arabia, and EU countries.

MHP's revenue in January-September 2025 went up 16% to $2.635 billion and net income grew 52.5% to $215 million.