10 June 2010
The IFC Board of Directors approved up to USD 50 mln loan as well as partial credit guarantee in the amount of up to USD 18 mln credit line to Myronivsky Hliboproduct (LSE: MHPC LI) on June 7, 2010. The company plans to use the proceeds to grow its land bank by 60% to 320 ths ha and expand its agricultural machinery fleet. Ruslan Patlavskyy: The approval of the said loan did not come as a surprise to us given the scale of company’s business and strong credit profile of MHP. We do not rule out that the company will not fully utilize the funds offered by the loan in 2010E given the recently secured USD 330 mln from Eurobonds placement. As a result, its net debt should remain well within 2.5x net debt/EBITDA covenant of MHP’15 notes.