EuroChem Completes Tender Offer and Places US$500 Million Eurobonds

Zug, Switzerland, October 14, 2016 – EuroChem Group AG, one of the world’s leading agrochemical companies, is pleased to announce that it completed a tender offer for its outstanding Eurobonds due 2017 and a simultaneous new issue to finance the purchase of notes under the tender offer.

Efficient tender structure and process provided bondholders with greater certainty around the new issue allocation and stimulated strong tender participation, with 57% of the notes tendered. With a yield of 3.80%, the new benchmark US$500 million Eurobonds issue matures in April 2020.

Andrey Ilyin, EuroChem CFO, commented, “We are pleased with these transactions which helped us extend our debt maturity profile beyond the first revenues from our key investment projects, while simultaneously capitalizing on investor confidence in EuroChem’s strategy and a relatively benign issuing environment”. Alexander Gavrilov, Deputy CFO and Head of Corporate Finance, added “This latest transaction allows us to once again set a new precedent with EuroChem obtaining the lowest-ever US$ coupon level achieved by a Russian non-investment grade borrower”.

The company held a 5-day roadshow, conducting investor meetings in Moscow, New York, Boston and London between 28 September and 4 October.

Citigroup acted as Global Coordinator for the issue. Joint Lead Managers and Bookrunners were (in alphabetical order): Citigroup, Goldman Sachs International, HSBC, ING, J.P. Morgan and Sberbank CIB. ADS Securities acted as a Co-Manager.
Asset managers and funds represented 46% of the issue, while banks and private banks accounted for 46% and 8% of the issue, respectively. The Eurobonds are listed on the Irish Stock Exchange.

The issue was rated BB- from Standard & Poor’s and BB from Fitch Ratings, in line with EuroChem’s corporate ratings.

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