IFC ready to allocate $100 mln to Ukraine's MHP for refinancing 2024 Eurobonds

MOSCOW. Oct 19 (Interfax) - The International Finance Corporation (IFC) of the World Bank Group has approved a $100 million loan to Ukrainian agricultural holding MHP, Ukraine's largest poultry meat producer, to refinance its $500 million Eurobonds maturing in May 2024, Ukrainian media reported.

This funding is provided along with the previously announced $30 million loan to MHP's subsidiary Vinnitsa Poultry Farm LLC, which is intended for a project to retrofit and expand the capacity of a plant for the production of biomethane from agricultural waste, the materials on IFC's website said.

As reported, MHP made an offer in late September to repurchase its Eurobonds for $500 million maturing on May 10, 2024 at a price of 85% of par value. Then it was reported that the holding reached an agreement in principle with a number of international financial institutions and development organizations to enter into credit agreements totaling up to $400 million, the revenue from which could be used for repurchase. One of such institutions is the European Bank for Reconstruction and Development (EBRD), which provides $100 million, and another $250 million is allocated by the United States International Development Finance Corporation (DFC).

The agricultural holding said in its semi-annual report that as of June 30, 2023, it had $502 million in free funds, of which $277 million was held by the group's subsidiaries outside Ukraine.

The holders of the Eurobonds were able to take advantage of the group's current liquidity potential, which is enhanced by the facilities of international financial institutions, and lower their exposure to risk prior to the Eurobonds' maturity, given that MHP can give no assurances that this liquidity will be maintained and the Eurobonds will be redeemed at maturity, the agricultural holding said.