Mriya postpones Eurobonds placement

According to local media reports, Mriya Agro Holding (FSE: MAYA GR) decided to postpone a Eurobond placement, through which it planned to raise some USD 200-300 mln. Mykyta Mykhaylychenko: In the current market conditions, we see the yield of the potential bonds at 11% or even higher. Proceeds were supposed to be used to expand its land bank, PPE and to repay IFC and/or other loans. We do not believe the delay will affect Mriya’s liquidity position materially (its net debt stood at USD 41.3 mln as of end-September and cash position was USD 80 mln, while debt redemption through year-end is USD 12 mln). This is the second Ukrainian company to postpone a Eurobond placement in the last few weeks. Earlier LSE-listed iron ore producer Ferrexpo said it would not to place its Eurobonds now due to unattractive pricing. Investors look quite wary of “second-tier” Ukrainian issuers although sovereign, quasi-sovereign and the largest local corporates did not have any significant problems in tapping the market earlier this year.