First Ukrainian International Bank (FUIB) acts as the lead manager, underwriter and paying agent for the UAH 300 million bond issue by HarvEast agricultural holding company. The bond issuer is “Ilich-Agro Donbass”, the largest company of HarvEast Group, guarantors are three other companies of the Group. The bond issue was registered by the SSMNC on 23 April 2012. Bonds were issued towards financing the working capital of the holding company. Another underwriter for this bond issue, alongside with FUIB, is Dragon Capital; co-underwriter, Altana Capital.

Two bond series were issued: series A of UAH 100 million maturing in 1.5 years (no put option) and series B of UAH 200 million maturing in 2.5 years (put option in 18 months). Coupon rate for series A bonds is 18% p.a. throughout the life of the bonds; for series B bonds, 18% for coupon periods 1-6. Series A bonds are to placed beginning May 2012; series B bonds, beginning June 2012. Bonds of both series will be placed at PFTS Stock Exchange.

“In international practice a bond issue is an efficient instrument for money raising and working capital financing, but its success depends greatly on the stability in the financial market,” comments Dmitriy Yurgens, Deputy Chairman of the FUIB’s Management Board in charge of investment business. “Since the year-beginning and so far the situation in the Ukraine’s financial market has stabilised, attitude to investment has become more positive, which is confirmed by the interest in this bond issue on the part of majority of large banks, insurance companies and institutional investors. We are confident that the demand for bonds issued by HarvEast will be high, as it is one of the most trustworthy bond issuers in the Ukraine’s market.”

As was reported earlier, in 2011 acted as the joint arranger for the UAH 1.8 billion bond issue by Ukraine’s Railways.

To purchase the bonds of HarvEast please contact the FUIB’s Securities Division (tel.: (044) 231-70-53, 231-73-52).