For Immediate Release
10 September 2021
NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE IN THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, THE RUSSIAN FEDERATION OR ANY OTHER JURISDICTION WHERE SUCH ACTIONS WOULD BE UNLAWFUL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 Seven-Year USD 500 Million Eurobond Issue with a Coupon of 2.6%, Setting new Benchmark for Russian Non-State Corporate Borrowers With Same Tenor
Moscow - PhosAgro (the "Company"; Moscow Exchange, LSE: PHOR), one of the world's leading vertically integrated producers of phosphate-based fertilizers, has successfully priced a USD 500 million seven-year (the longest-tenor issue by the Company) Eurobond issue with a coupon of 2.6% to be listed on Euronext Dublin.
The Company priced the issue on 9 September 2021 and the settlement is expected to take place on 16 September 2021.
PhosAgro CEO Andrey Guryev said: "We are delighted that the market has once again shown interest in PhosAgro's bond issue. The pricing process was a success and we closed the order book at a record low coupon rate for a seven-year Eurobond by a non-state Russian issuer. Significant demand from investors from all over the world indicates that there is strong interest in PhosAgro's corporate debt and that the Company is viewed as reliable. Our efficient and flexible business model, ambitious development strategy and established history with the capital markets were all important factors in attracting this financing. We plan to use the funds raised from the bond placement for general corporate purposes, as well as loan portfolio refinancing to maintain PhosAgro's net debt/EBITDA ratio at a comfortable level."
PhosAgro Board of Directors Chairman Xavier Rolet, who served as CEO of the London Stock Exchange from 2009 to 2017, said: "We are very pleased to report that the Company's track record of earnings growth and financial stability powered by strong demand for its sustainable, eco-efficient fertilizers that are free from harmful concentrations of cadmium and other heavy metals hazardous to human health and soils, elicited strong demand for its Eurobond issue from a wide range of Russian and international investors."
During the book building process, demand for PhosAgro's new Eurobond issue significantly outstripped the planned offering size.
The contemplated Eurobond issue is expected to be rated BBB- by Standard & Poor's, Baa3 by Moody's and a BBB-(EXP) by Fitch Ratings, which is consistent with the Company's corporate credit ratings.
BofA Securities, Citi, Gazprombank, J.P. Morgan, RBI, Renaissance Capital, SberCIB, UniCredit and VTB Capital acted as joint bookrunners for the transaction.
Andrey Serov, Head of the Investor Relations Department
+7 495 231 2747 ext. ext. 2183
Timur Belov, Press Officer
+7 495 231 2747 ext. 2652
+44 207 002 7859
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%, 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, more than 50 grades of fertilizers, feed phosphates, ammonia, and sodium tripolyphosphate, which are used by customers in 102 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.
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