For Immediate Release

24 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NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE IN THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, THE RUSSIAN FEDERATION OR ANY OTHER JURISDICTION WHERE SUCH ACTIONS WOULD BE UNLAWFUL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's 3.05% Coupon Sets Record Low for USD-denominated Bond Placements by Russian Borrowers

 

Moscow - PhosAgro ("PhosAgro" or "the Company") (Moscow Exchange, LSE: PHOR), one of the world's leading vertically integrated phosphate-based fertilizer producers, announces that yesterday it closed its USD 500 million 5-year Eurobond issue with a coupon of 3.05%.

 

PhosAgro CEO Andrey Guryev said: "I am happy to announce the successful completion of this transaction, which saw PhosAgro establish a record low coupon for USD-denominated bond placements by Russian issuers. I am confident that our success will provide a clear signal to the market and will serve as a benchmark for future placements.

 

"The issue saw strong interest from investors: the coupon rate was 32.5 b.p. lower than the upper end of the initial range; the order book was more than 4x oversubscribed at peak demand (with a volume of around USD 2 bln).

 

"More than 75% of the issue was purchased by foreign institutional investors (UK, 33%; United States, 20%; Continental Europe, 15%; Asia and the Middle East, 7%) and we are pleased that leading Russian and international funds and banks took part in the placement."

 

The funds from this placement will be used to optimise PhosAgro's loan portfolio while maintaining the Company's net debt/EBITDA ratio at a comfortable level.

 

PhosAgro's Eurobond issue was assigned credit ratings of 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 this transaction.

 

 

About PhosAgro

 

PhosAgro (www.phosagro.com) 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% and one of the leading producers 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.com.

 

Manufacturer target market (MiFID II Product Governance) is eligible counterparties and professional clients (all distribution channels) only. No PRIIPs key information document (KID) has been prepared as not available to retail in EEA.

 

This announcement is directed only at persons who (i) are outside the United Kingdom or (ii) have professional experience in matters relating to investments falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) order 2005 (the "Order") or (iii) are persons falling within article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc") of the Order or (iv) to whom this announcement may otherwise be directed without contravention of section 21 of the Financial Services and Markets Act 2000 (all such persons together being referred to as "relevant persons"). This announcement must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this announcement relates is available only to relevant persons and will be engaged in only with relevant persons.

 

In member states of the EEA, this announcement is directed only at persons who are "qualified investors" within the meaning of Prospectus Regulation (Regulation (EU) 2017/1129).

 

This announcement is not for public release, publication or distribution, directly or indirectly, in or into the United States (including its territories and possessions, any State of the United States and the District of Columbia), except to "qualified institutional buyers" ("QIBs") as defined in Rule 144A under the U.S. Securities Act of 1933, as amended (the "Securities Act") that are also "qualified purchasers" ("QPs") as defined in Section 2(a)(51) of the U.S. Investment Company Act of 1940, as amended. This announcement does not constitute or form a part of any offer of, or solicitation to purchase or subscribe for, any securities in the United States. Any such securities have not been, and will not be, registered under the Securities Act and may not be offered or sold in the United States, except to QIBs that are also QPs in reliance on the exemption from registration under Rule 144A. No public offering of securities will be made in the United States of America or in any other jurisdiction where such an offering is restricted or prohibited.

 

This announcement or information contained therein is not an offer, or an invitation to make offers, to sell, exchange or otherwise transfer securities in the Russian Federation to or for the benefit of any Russian person or entity and does not constitute an advertisement or offering of securities in the Russian Federation within the meaning of Russian securities laws. Information contained herein is intended only for persons who are "qualified investors" within the meaning of Article 51.2 of the Federal Law no. 39-FZ "On the Securities Market" dated 22 April 1996, as amended (the "Russian QIs") and must not be distributed or circulated into Russia or made available in Russia to any persons who are not Russian QIs, unless and to the extent they are otherwise permitted to access such information under Russian law. The securities have not been and will not be registered in Russia and are not intended for "placement" or "circulation" in Russia (each as defined in Russian securities laws) unless and to the extent otherwise permitted under Russian law.