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Wednesday, July 13, 2011
Investment company Jaspen Capital Partners acted as a transaction co-lead manager for the London Stock Exchange placement of 3 year Eurobonds for Agroton Public Limited (ticker: AGT PW). The notes have a face value of $50 million.
Agroton, a publicly traded company on the Warsaw Stock Exchange, completed the placement of its debut $50 million, 3 years Eurobond issue with a coupon rate of 12.5% paid semi-annually. During the placement, demand from international investors (mainly Western European funds) exceeded the offered amount.
Agroton plans to utilize the Eurobonds proceeds to refinance existing debt, increase capacities of grain and oilseeds silos, increase its farmed land bank and to ultimately purchase its land bank after the moratorium on sales of agricultural land is lifted in Ukraine.
Andrey Supranonok, CEO of Jaspen Capital Partners, stated “Agroton’s recent Eurobonds placement is one of the largest transactions to date this year for a Ukrainian company on the international capital markets. The interest level demonstrated by fixed income investors, despite a global decrease in risk appetite stemming from the Greek and European debt predicament, shows firm market confidence in Agroton’s management and strategic direction. This show of confidence during a time of uncertainty essentially restates the original positive view held by equity investors during the company’s Warsaw Stock Exchange debut last November. It furthermore indicates a continued desire for Ukrainian deals from the international investment community, sending a positive signal to similarly situated companies considering additional transactions this year.”