MHP Increases Debt Financing: What Lies Behind the Eurobond Offering
3 February 16:58
MHP, an international agro-industrial company owned by businessman Yuriy Kosyuk, has announced an additional placement of Eurobonds maturing in 2029 in the amount of $100 million at an annual interest rate of 10.5%. This was reported by Interfax-Ukraine , as cited by "Komersant Ukrainian".
The additional issuance comes on top of the $450 million raised at the end of January 2026. The company attributes the decision to high investor demand and favorable market conditions.
Why MHP is raising additional funds
The company plans to use the proceeds from the additional placement, as well as from the main 2029 Eurobond issue, for:
- the buyback and full redemption of the 2026 Eurobonds with a 6.95% coupon, which mature in early April 2026;
- covering expenses related to the placement of the new debt.
MHP notes that the additional issuance effectively replaces the use of $100 million in its own cash, which was previously planned to be used for the partial redemption of the 2026 bonds.
The company plans to hold the freed-up funds primarily outside Ukraine and use them in the future for:
- investment projects;
- capital expenditures;
- the group’s current operating needs.
This approach indicates a rebalancing between equity financing and debt instruments amid war risks and limited access to domestic resources.
How the market reacted
According to data from the Frankfurt Stock Exchange, on the day the additional issuance of the MHP-2029 Eurobonds was announced, their price rose by 0.07% and they are trading above par—at 102.41%.
This may indicate that investor confidence in the company’s debt obligations remains strong, despite the high coupon rate.
In late January, MHP had already raised $450 million through the placement of Eurobonds-2029 with a 10.5% coupon rate.
The company previously announced the redemption of its 2026 Eurobonds for a total of $550 million.
MHP is Ukraine’s largest poultry producer, exports its products to over 80 countries, and has production assets in Ukraine, Southeast Europe, and a number of jurisdictions in the EU and the Middle East.
