EuroChem completes RUB 35 bn Bond Placement

Zug, Switzerland, 21 April 2020 – EuroChem Group AG (“EuroChem”, “Group” or “Company”), a leading global fertilizer company, today announces that its Russian subsidiary MCC EuroChem has completed a RUB 35 billion ($480 million) bond issue. The bond, which is guaranteed by the Group, has a maturity period of five years, and was placed in two tranches, the first at 8.25% per annum for RUB 10 billion, and the second at 8.05% for RUB 25 billion.

The bid for the second tranche was heavily oversubscribed and as a result the coupon rate was reduced by 20 basis points from the initially marketed level and the issue volume was increased by 2.5 times the amount initially planned. Around 50 investors participated in the transaction across both tranches.

EuroChem plans to use the proceeds of the bond issue to refinance short-term maturities.

Kuzma Marchuk, EuroChem Group CFO, commented: “We are very pleased to have completed such a successful return to the Russian bond market. Amid all the turmoil in the global financial markets, this shows the Group’s credit quality is perceived as strong and our business profile strategically important in ensuring continuity in the food supply chain.”

EuroChem Head of Corporate Finance and Treasury Ruslan Karmanny added: “The rouble bond market was closed in March on the back of the oil price fall, exchange rate fluctuations, and the spread of the coronavirus. Our transaction effectively reopens the market for other issuers as well as setting a new benchmark for the Group and extending the secondary curve on the rouble bond market.”

BK REGION LLC and Credit Bank of Moscow acted as lead managers on the transaction.

About EuroChem Group AG

EuroChem is a leading global producer of nitrogen, phosphate and potash fertilizers, as well as certain industrial and mining products. The Group is vertically integrated with activities spanning mining to fertilizer production, logistics, and distribution. EuroChem began test production at its Usolskiy potash mine in early 2018, and continues to develop a second greenfield site at VolgaKaliy in Russia. Headquartered in Zug, Switzerland, the Group operates production facilities in Europe, Asia and the CIS, employing more than 26,000 people.


Guy Dresser
Head of Communications
EuroChem Group AG

Russian Media

Vladimir Torin
Head of Public Relations
MCC EuroChem


Oxana Kovalenko
Head of Investor Relations
EuroChem Group AG

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