25 Sep 2009 07:07
September 25, 2009
Acron's Second Bond Issue 2.2 Times Oversubscribed
On September 24, 2009 Acron completed the offering of its second bond issue on the Russian MICEX. Based on the bids received, the Group set the first coupon rate at 14.05% pa, making the bond yield at the date of its put option 14.54% pa.
A total of 193 bids worth over RUB 7.7 billion were received. The rates on the bids varied between 13% and 16.50% pa. The issue therefore has been fully subscribed.
The issue arranger is Raiffeisenbank, with co-arrangers Sberbank of Russia, MKB Bank, Promsvyazbank and UniCredit Bank. The underwriters are VBRR and Bank Zenit.
Offered at par, the two-year bonds were placed by Acron for a total of RUB 3.5 billion. The coupon is to be paid semi-annually at a rate of 14.05% pa for the first four coupons; further coupon rates will be set by the issuer at a later date. The issue has a two-year put option exercisable at par value.
The Group will use the proceeds from the bond offering for debt restructuring and working capital financing.
Oscar Valters, Acron's vice-president for finance, commented: "The well-timed offering and professionalism of the issue arranger underpinned investors' interest. The bond issue will allow us to optimise our debt portfolio as we increase the share of rouble-denominated debt and reduce our foreign exchange exposure. In addition, a certain portion of the proceeds will be used to repay our short-term bank loans, which will remarkably strengthen the liability side of Acron's balance sheet."
Oleg Gordienko, Raiffeisenbank deputy head for corporate financing and investment banking: "Acron's successful offering is a good sign for the market in general and is still further proof of the Group's solid credit profile."
For further Information:
Acron
Elena Kochubey - Tel: +7 (495) 777 08 65
Head of Public Relations
Ilya Popov - Tel: +7 (495) 411 55 94
Head of Investor Relations
Notes to editors
Acron is a leading Russian and global mineral fertiliser producer with a diversified product portfolio consisting of multi-nutrient fertilisers such as NPK and bulk blends, and straight nitrogen-based products such as urea, ammonium nitrate and UAN. In 2008, the Group's output of ammonia and mineral fertilisers (exclusive of own use) totalled 3.6 million tonnes. The Group's key markets are Russia, China and other Asian countries, Europe, Latin America, and FSU countries.
Acron employs over 13,000 people In 2008 the Group's consolidated revenues under IFRS were RUB 43,132 million (US$ 1,734 million), and net income was RUB 9,891 million (US$ 398 million). Acron's ordinary shares are listed and traded on the MICEX, RTS and LSE stock exchanges under the symbol "AKRN".
Acron has three production facilities - Acron (Veliky Novgorod, Russia), Dorogobuzh (Smolensk Region, Russia) and Hongri Acron (Shandong Province, China). Acron's logistics and transportation capabilities include its own fleet of railway cars and three sea port trans-shipment facilities on the Baltic Sea - at the Kaliningrad port of Russia, at the Estonian Sillamäe port and at the Estonian Tallinn port. The Group operates distribution networks in Russia and China.
Acron plans to enhance its vertical integration and secure supplies of phosphate and potash inputs through the development of its own mineral resource base. The Group owns licences to develop two apatite-nepheline ore deposits in the Murmansk region and a potassium-magnesium salts deposit in the Perm region (both located in Russia).
AKRN.L (AKRN)