MHP considers 10Y bond issue for up to USD 350 mln

Ukriane’s leading poultry producer MHP (MHPSA, MHPC
LI) reported on Sept. 10 that it is considering an issue of USD 300-350 mln in
international bonds maturing in ten years. The company is arranging meetings
with fixed income investors to discuss the potential issue.

Alexander Paraschiy: MHP managed to place its Eurobonds in 2017 and 2018 with a negative
spread to Ukraine’s sovereign curve. Most likely, the company is now aiming for
the same bond pricing (or at a rate below 6.8%, based on today’s bond
quotations). That does not look impossible, taking into account the company’s
perfect credit history and superior ratings as compared to the sovereign. The
key risk is the relatively small amount of the bond’s issue, which could raise
concerns about its future liquidity.