MHP increases debt financing: what is behind the additional issue of Eurobonds
3 February 16:58
The international agro-industrial company MHP, owned by businessman Yuriy Kosyuk, has announced an additional placement of Eurobonds maturing in 2029 in the amount of $100 million at 10.5% per annum. This was reported by Interfax-Ukraine , as relayed by Komersant.
The additional issue is in addition to the $450 million raised at the end of January 2026. The company explains the decision by high demand from investors and favorable market conditions.
Why MHP is raising additional funds
The company plans to use the funds from the additional placement, as well as from the main issue of Eurobonds-2029, for:
- repurchase and full redemption of Eurobonds-2026 with a rate of 6.95%, which expire in early April 2026;
- covering the costs associated with the placement of new debt.
MHP notes that the additional issue effectively replaces the use of $100 million of its own cash, which was previously planned to be used for the partial redemption of the 2026 bonds.
What this means for the group’s financial strategy
The company plans to keep the freed-up funds mainly outside Ukraine and use them in the future for:
- investment projects;
- capital expenditures;
- the group’s current operating needs.
This approach reflects a rebalancing of equity financing and debt instruments in the context of military risks and limited access to domestic resources.
How the market reacted
According to data from the Frankfurt Stock Exchange, on the day of the announcement of the additional issue, MHP-2029 Eurobonds rose in price by 0.07% and are trading above par at 102.41%.
This may indicate that investors remain confident in the company’s debt obligations, despite the high coupon rate.
At the end of January, MHP already raised $450 million through the placement of Eurobonds-2029 with a rate of 10.5%.
The company had previously announced the redemption of Eurobonds-2026 for a total of $550 million.
MHP is the largest chicken producer in Ukraine, exports its products to more than 80 countries, and has production assets in Ukraine, Southeast Europe, and a number of EU and Middle Eastern jurisdictions.
