Kernel to bring Ukrainian supply in from the cold

22 Jan, 2017

One of the world's largest exporters of sunflower oil is poised to become the first Ukrainian corporate to issue a bond since 2013. Kernel Holdings, an agribusiness headquartered in Ukraine and with a listing on the Warsaw Stock Exchange, has hired ING and J.P. Morgan to arrange investor meetings in Europe and the US from Thursday ahead of a potential debut five-year US dollar deal. The company is likely to offer a healthy yield to entice investors, although a source familiar with the deal said it was too early to speculate what sort of level would be needed.
With 95% of its Ebitda and revenues in hard currency and kept offshore, Kernel is rated above the sovereign - two notches by Fitch, at B+, and one notch by Standard & Poor's, at B. Ukraine has a Sep 2022 bond trading at 8.11%, according to Thomson Reuters data.

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