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NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE IN THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, THE RUSSIAN FEDERATION OR ANY OTHER JURISDICTION WHERE SUCH ACTIONS WOULD BE UNLAWFUL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.
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.
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