OREANDA-NEWS. July 26, 2010. Sviaz-Bank acted, together with Raiffeisenbank CJSC, as managing underwriter of bonds issued by MKH EuroChim OJSC to raise 5billion rubles, reported the press-centre of Sviaz-Bank.

On July 5, 2010, MKH EuroChim OJSC completed acceptance of tenders for an auction to float its Series 02bonds at a coupon interest rate of 8.9% per annum.

As book-building went on, investors filed applications estimated at 8.6 billion rubles. Significant demand by investors lowered the interest rate of the first coupon to below the original range of 9.25% to 9.75% per annum. The issue terms allow bondholders to demand early redemption of their bonds at par value five years after purchase, on July 3, 2015.

The bonds will be offered technically on the MICEX Stock Exchange on July 6, 2010. The revenue raised from the sale of the bonds will be used to refinance the company’s existing debt and to finance its investment program.

MKH EuroChim OJSC is among the world leaders in agricultural chemistry in terms of manufacturing capacity. The company’s core products are nitrogen and phosphate fertilizers that the company supplies to farmers, wholesale buyers, and traders in various regions of the world.