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.