Kernel will repay Eurobonds for $300 million in October

Agroholding Kernel announced plans to fully repay Eurobonds in the amount of $300 million within a specified period.

The specified date is October 17, 2024. This is stated in the company’s announcement on the Warsaw Stock Exchange, Interfax-Ukraine reports.

The company will also pay a 6.5% annual coupon on the bonds, the statement said. This was in response to speculation about a possible debt restructuring. Kernel emphasized that at this time they do not plan to change the initial terms of the bonds, as they have enough resources to fulfill financial obligations in a timely manner.

Before the war, Kernel was a world leader in the production and export of sunflower oil, as well as one of the largest producers of bottled oil in Ukraine. Despite the difficulties, the agricultural holding demonstrates financial stability: according to the results of the 2023 fiscal year, the company received a net profit of $299 million, although the year before that it ended with a loss.

However, for the nine months of fiscal 2024, Kernel posted a 53% decline in net income to $204 million, while its EBITDA fell 36% to $384 million.

USM previously reported that the Kernel fleet now carries about 10% of the company’s agricultural products. Agroholding plans to continue to increase the volume of transshipment, invest in the fleet and work in the ports of Great Odesa