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9 September 2021
Phosagro placed Eurobonds for $500 million for 7 years at 2.6%

Fertilizer producer Phosagro has placed Eurobonds for $500 million for 7 years at 2.6%, head of the VTB Capital Debt Capital Markets Department Andrey Solovyov told TASS.

"VTB Capital" co-organized the placement of seven-year Eurobonds of Phosagro with a volume of $500 million and a coupon rate of 2.60%. 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, " said Solovyov, whose words were quoted in the press service of VTB Capital.

According to him, the initial yield target was 3.25%, then it was reduced to 2.875% -3%, then to 2.75%, the final yield of the issue was 2.6%.

"Investors from 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. Asset managers bought 74% of the securities, banks and private banks accounted for 18%, insurance and pension funds accounted for 4%, hedge funds bought 4%, " Solovyov added.

Earlier, a TASS source said that Phosagro will place Eurobonds for $500 million for 7 years at 2.6%.

In June, Alexander Sharabaiko, Deputy General Director for Finance and International Projects of Phosagro, told TASS that the company could decide to place Eurobonds for $500 million to refinance debt in the amount of $ 350 million by November 2021. The company also considered the possibility of refinancing by attracting a syndicated bank loan. The organizers are Gazprombank, BofA, Citibank, Raiffeisen Bank, VTB Capital, UniCredit and Renaissance Capital.
Corporate Communications VTB Capital