MHP prices 10Y bond at 6.25%, media report

Ukraine’s leading poultry producer MHP (MHPSA, MHPC LI)
completed the placement of its new 10-year Eurobonds for USD 350 mln,
Interfax-Ukraine reported on Sept. 12 citing its own sources. According to the
source, the coupon rate for the new bond was set at 6.25%.

In other news, Fitch Ratings reported on Sept. 10 that
it has upgraded MHP’s issuer default rating to “B+” (from “B”) with a stable
outlook. The agency related the upgrade to its recent increase of the Ukrainian
sovereign rating (to “B” with a positive outlook),
thus keeping the company’s rating one notch above the sovereign. Fitch
highlighted that MHP’s business and financial profile corresponds to “BB-“
rating category, but the ultimate rating is constrained by the operating
environment in Ukraine.

Alexander Paraschiy: The placement rate of the new bonds is 44bps below Ukraine’s sovereign
yield curve, we calculate, which reflects the trend of previous MHP issues (58
bps and 98 bps below sovereign for MHP bonds placed in 2018 and 2017, respectively).
In this way, MHP’s yield curve continues to trade inside Ukraine’s sovereign,
which confirms our neutral view on all MHPSA bonds.