Industrial Milk offers UAH 200 mln in local bonds
15 June 2012
Industrial Milk Company (IMC PW) announced yesterday that subsidiary Burat-Agro obtained a certificate of registration from Ukraine’s Securities and Exchange Commission for a UAH 200 mln bond issue. The bonds’ maturity date is June 26, 2014. Coupon interest rate is 14%, paid quarterly. The company plans to use proceeds to finance expansion. Industrial Milk has yet to sell the bonds.
Vitaliy Vavryshchuk: The announced interest rate seems far below the market – with the government’s one-year t-bills yielding 14%+, we think the company has to offer 20%+ interest to attract any material interest to its bonds.
