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9 September 2021
Interfax
PhosAgro placed 7-year Eurobonds for $500 million at 2.6%

Moscow. September 9. - PhosAgro placed 7-year Eurobonds for $500 million at 2.6%, a source in banking circles told Interfax and the banks that organized the transaction confirmed.

The initial benchmark yield of the issue was about 3.25%, during the collection of applications, it was reduced to 2.875-3%, and then to 2.75%.

The placement was organized by BofA Securities, Citi, Gazprombank (MOEX: GZPR), JP Morgan, Raiffeisen Bank International, VTB Capital, Renaissance Capital, Sber CIB and UniCredit.

"The issuer has a high level of credit risk, so the demand from international investors was very high. As part of the transaction, more than 200 investors submitted their applications. The book was oversubscribed almost seven times, which is a record for such an offering, at the peak the volume of the book reached more than $3.25 billion," Andrey Solovyov, head of the Debt capital Markets department of VTB Capital, told reporters.

According to the banker, the geography of the issue is as follows: investors from continental Europe bought 36% of the securities, 24% of the issue fell on British investors, 16% - on American, 11% of the securities went to Russian investors, investors from Asia and the Middle East bought 9% of the issue, 3% fell on Swiss investors and 1% - on investors from other regions.

The company last entered the Eurobond market in January 2020, placing a 5-year issue for $500 million at 3.05% per annum.

In total, in 2021, PhosAgro will have to repay a total amount equivalent to 33 billion rubles, including 25 billion rubles for previously placed Eurobonds, a new issue can be used for refinancing, it was reported in the company's presentation to investors.

The ratio of PhosAgro's net debt to EBITDA at the end of the second quarter was 1.07 x compared to 1.86 x at the end of 2020.
Corporate Communications VTB Capital