Galychyna Successfully Places UAH 30 Million Corporate Bonds
ARTA Investment Partners has successfully placed corporate bonds issued by CJSC Galychyna, one of the major dairy producers in Ukraine, for UAH 30 million.
Bonds have been placed through selling 30,000 three-year bonds (series A and B) with a UAH 1,000 face value and a 15,75% coupon payable on a quarterly basis. The Ukrainian national credit rating agency Credit Rating upgraded Galychyna’s rating to uaBBB/Stable. Bonds rated uaBBB are less exposed to risk of insolvency.
The majority of the bonds have been acquired by lending institutions and banks. According to Larisa Primenko, ARTA’s Corporate Finance Director: ‘The current market liquidity does not support listing the bonds on the stock exchange. They will however be listed on PFTS Stock Exchange in the nearest future and will be freely traded on the secondary market.’
With an efficient distribution network, CJSC Galychyna actively takes the lead position in the market as the primary regional dairy supplier. Galychyna has doubled its production facilities and sales in 2007 and intends to invest bond yields in production development and further expansion of its distribution network.
NOTE:
ARTA Investment Group includes ARTA Investment Partners Ltd., ARTA Securities Ltd., and ARTA Assets Management Ltd. Since 2002, ARTA provides a full range of investment banking services including brokerage, corporate finance and asset management. ARTA has attracted approx USD 1.5 billion of investments to the local market.
