OREANDA-NEWS. August 9, 2011. Agroton Group (AGT:WS), one of the largest agricultural producers in eastern Ukraine, has successfully placed its debut three-year USD 50m Eurobond issue. Dragon Capital, UBS and VTB Capital acted as Lead Managers and Bookrunners on the deal.

The issue was priced at par with a 12.5% coupon, payable semiannually. The senior unsecured notes were issued in accordance with Regulation S and are listed on the London Stock Exchange.

Agroton’s debute issue follows strong interest from international investors in the Ukrainian agricultural sector and robust growth in Ukraine’s leading agricultural concerns. Agroton’s focused strategy and conservative debt financing approach allowed for successful placement despite recent challenging market conditions, experiencing strong demand from European investors.

“We are pleased with the results of Agroton’s debute placement. The bond enables Agroton to diversify its capital base and build on the momentum of Ukraine’s expanding agricultural sector. The strong demand we have registered demonstrates the market’s appreciation of this new instrument providing exposure to a major, growing agricultural producer in Ukraine”, – commented Hal Rilling, Managing Director, Head of DCM, Dragon Capital.

The proceeds from the Eurobond issue will be used primarily to redeem the Group’s existing bank debt, fund the construction of new grain storage facilities, acquire agricultural machinery, and to expand the Group’s existing land bank.