Kernel-Trade to place $50 million in foreign currency bonds
3.11.2026 - 14:50
This is the first public issue of foreign currency corporate bonds of this size in Ukraine.
From November 9 to 20, Kernel-Trade will place public corporate bonds of series D for $50 million at 5.75% per annum. Forbes reports this.
The National Securities and Stock Market Commission registered the issue, calling it the first public placement of foreign currency corporate bonds of this size in Ukraine.
This concerns 50 thousand bonds with a face value of $1,000. The papers are unsecured, that is, without collateral. The rate of 5.75% will be valid for the first year and a half, then the company’s supervisory board will review it within the range of 2% to 10%. Interest will be paid quarterly, repayment is scheduled for November 2029.
The organizers of the issue are Raiffeisen Bank and Univer Capital, and EY provided advice on the structure. Investors will be able to purchase bonds through licensed brokers with access to trading on the PFTS exchange.
The funds will be used for operating activities: 60% for the purchase of agricultural products, 30% for oilseed processing and 10% for trade, export and logistics operations. Payments are planned to be made in dollars, if the current currency legislation allows it.
Until now, large Ukrainian companies have attracted foreign currency financing mainly abroad – through foreign banks, Eurobonds or private transactions. The domestic capital market has hardly participated in such transactions. Kernel explained that the issue should diversify the group’s sources of long-term financing and supplement the attraction of funds through Eurobonds.
The need for resources is associated with increasing costs. For the fiscal year ended June 30, Kernel increased revenue by 7% to $4.4 billion and EBITDA by 20% to $558 million. Despite this, the board of directors recommended not paying a dividend. The funds will be used to repair damaged facilities and cover the costs of more complex logistics.
As USM previously reported, Kernel has almost halved its oil exports due to problems with port logistics.
