For Immediate Release
16 January 2020
NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE IN THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, THE RUSSIAN FEDERATION OR ANY OTHER JURISDICTION WHERE SUCH ACTIONS WOULD BE UNLAWFUL
PhosAgro Prices new USD 500 Million Five-Year Eurobond With Record Low USD Coupon for Russian Issuers of 3.05%
Moscow - PhosAgro (the "Company", the "Group"; Moscow Exchange, LSE: PHOR), one of the world's leading vertically integrated phosphate-based fertilizer producers, has successfully priced a USD 500 million five-year Eurobond issue with a coupon of 3.05%. The Company priced the issue yesterday and settlement is expected to take place on 23 January 2020.
PhosAgro CEO Andrey Guryev said: "Since our debut Eurobond issue in 2013, the Company has transformed its business, strengthening its positions as one of the lowest-cost and most sustainable vertically integrated fertilizer producers in the world. PhosAgro recently completed a large-scale investment cycle, strengthening its position in both Russian and international markets, creating a solid base for long-term sustainable growth.
"I am pleased to announce that PhosAgro has taken another successful step in public capital markets, setting a new record low coupon among Russian issuers for USD-denominated bonds. Oversubscription was higher than 4x at peak demand, with participation by a broad range of investors from all over the world, indicating there is strong demand for PhosAgro's corporate debt and that the Company is viewed as reliable."
Xavier Rolet, Chairman of PhosAgro's Board of Directors and former CEO of the London Stock Exchange from 2009 to 2017, underscored that "further proof of the transaction's success is the fact that these bonds include a reduced set of covenants, which indicates investors' high level of confidence in PhosAgro, in its capacity as a first-class corporate borrower and in its financial stability. The Company, which listed on the LSE almost nine years ago, fully complies with the exchange's motto, 'dictum meum pactum'."
Demand for the bonds at record low price guidance reached USD 2 billion with participation from a broad range of institutional investors, banks, asset management companies and funds from Russia, Europe, the United States and Asia. Upon completion of the transaction, the funds will be used to optimise PhosAgro's credit portfolio while maintaining net debt/EBITDA at a comfortable level.
The credit ratings assigned to PhosAgro's latest Eurobond issue are BBB- from Standard & Poor's, Baa3 from Moody's and BBB- (EXP) from Fitch Ratings, which corresponds to the Company's corporate credit ratings.
Citi, Gazprombank, J. P. Morgan, BofA Securities, Sberbank CIB, VTB Capital and Renaissance Capital acted as joint bookrunners for the transaction.
Andrey Serov, Head of Investor Relations
+7 495 232 9689 ext. 2187
Timur Belov, Press Secretary
+7 495 232 9689 ext. 2652
+44 207 002 7859
PhosAgro (www.phosagro.ru) is one of the world's leading vertically integrated phosphate-based fertilizer producers in terms of production volumes of phosphate-based fertilizers and high-grade phosphate rock with a P2O5 content of 39% and higher. PhosAgro's environmentally friendly fertilizers stand out for their high efficiency, and they do not lead to the contamination of soils with heavy metals.
The Company is the largest phosphate-based fertilizer producer in Europe (by total combined capacity for DAP/MAP/NP/NPK/NPS), the largest producer of high-grade phosphate rock with a P2O5 content of 39%, a top-three producer of MAP/DAP globally, one of the leading producers of feed phosphates (MCP) in Europe, and the only producer in Russia, and Russia's only producer of nepheline concentrate (according to the RAFP).
PhosAgro's main products include phosphate rock, 39 grades of fertilizers, feed phosphates, ammonia, and sodium tripolyphosphate, which are used by customers in 100 countries spanning all of the world's inhabited continents. The Company's priority markets outside of Russia and the CIS are Latin America, Europe and Asia.
PhosAgro's shares are traded on the Moscow Exchange, and global depositary receipts (GDRs) for shares trade on the London Stock Exchange (under the ticker PHOR). Since 1 June 2016, the Company's GDRs have been included in the MSCI Russia and MSCI Emerging Markets indexes.
More information about PhosAgro can be found on the website: www.phosagro.ru.
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