Phosagro S Regulatory News (PHOR)

PJSC PHOSAGRO - PhosAgro Prices USD500m 5.25-y Eurobond at 3.949%

PR Newswire

London, January 18

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY IN THE UNITED STATES OF AMERICA (EXCEPT TO QIBS THAT ARE ALSO QPS AS DEFINED BELOW), AUSTRALIA, CANADA, JAPAN, THE RUSSIAN FEDERATION OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL.

PhosAgro Prices USD500m 5.25-y Eurobond at 3.949%

Moscow – PhosAgro ("PhosAgro" or "the Company") (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, has successfully priced a USD 500 million 5.25-year (5 years, 3 months) Eurobond issue with a coupon of 3.949%.

The Company priced the issue yesterday, and settlement is expected to take place on 24 January 2018.

PhosAgro CEO Andrey Guryev said: "We are pleased that we have again managed to successfully price Eurobonds at one of the lowest rates among Russian corporates, and at a new record low coupon for the Company.

“We managed to reduce the coupon rate by 55 bps from the upper end of the initial guidance, which once again confirms the Company’s status as a first-class borrower and demonstrates the high level of interest from a wide range of investors. This order book was more than 5x oversubscribed at its peak (peak demand amounted to more than USD 2.5 billion).

“The funds from this transaction will be used to refinance PhosAgro’s debut Eurobond, placed in 2013 with a coupon rate of 4.204%. The favourable terms of this new transaction will enable us to lower PhosAgro’s average interest rate and significantly improve the structure of our debt portfolio.

“We believe that this placement, which is due to be the first Russian corporate Eurobond placement of 2018, will act as a benchmark for other corporate borrowers and send a positive signal to the market. The successful pricing of this Eurobond confirms that PhosAgro has chosen the correct development strategy, that this strategy is being implemented by a highly professional management team, and that PhosAgro’s investment case is very attractive.”

PhosAgro’s planned Eurobond issue was assigned credit ratings of BBB- from Standard & Poor's, Ba1 from Moody's and a preliminary rating of BB+(EXP) from Fitch Ratings, which corresponds to the Company’s corporate credit ratings.

BofA Merrill Lynch, Citi, JP Morgan, Sberbank CIB, and VTB Capital acted as joint global coordinators and bookrunners for this transaction, while Raiffeisen Bank International, Renaissance Capital, Société Générale, UBS, and UniCredit were joint bookrunners.

Notes to Editors

PhosAgro (www.phosagro.ru) is one of the world’s leading vertically integrated phosphate-based fertilizer producers in terms of production volumes of phosphate-based fertilizers and high-grade phosphate rock with a P2O5 content of not less than 39% (according to IFA, Fertecon and CRU).

The Company is the largest phosphate-based fertilizer producer in Europe, the largest producer of high-grade phosphate rock (with a P2O5 content of not less than 37%) worldwide and the third largest MAP/DAP producer in the world (excluding China), according to IFA. PhosAgro is also one of the leading producers of feed phosphates (MCP) in Europe, and the only producer in Russia. PhosAgro is Russia’s only producer of nepheline concentrate.

PhosAgro’s main products include phosphate rock, over 35 grades of fertilizers, feed phosphates, ammonia, and sodium tripolyphosphate, which are used by customers in 100 countries spanning all of the world’s inhabited continents. The Company’s priority markets outside of Russia and the CIS are Latin America, Europe and Asia.

PhosAgro’s shares are traded on the Moscow Exchange, and global depositary receipts (“GDRs”) for shares trade on the London Stock Exchange (under the ticker PHOR). Since 1 June 2016, the Company’s GDRs have been included in the MSCI Russia and MSCI Emerging Markets indexes.

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