Fertilizer maker Ukrtekhnofos expects successful issue of second bond offering
FirsTnews
The ability of small to medium-sized industrial firms to raise money in the bond market has given Ukraine’s corporations a very effective tool through which they may meet financial needs while avoiding dilution of ownership.
The most recent firm to use this method, a chemical fertilizer manufacturer, expects to raise 5 million UAH in a May 23 offering that is expected to be completely subscribed within a two-week period.
LVIV, May 15 -- Ukrtekhnofos, a Rivne-based chemical fertilizers producer, registered its second bond issue on May 5. The amount of the issue is estimated at UAH 5 million, with Optima-Invest of Lviv as lead-manager and underwriter and Credit Bank Ukraine as co-underwriter.
It is anticipated that the bond floatation will last only two weeks after it is issued on May 23.
“We have no doubts that the issue will be successful,” Andriy Dribnyuk, director at Optima- Invest. “We have been watching the [advance] interest of the market participants in these bonds for a long time,” he added.
The Ukrainian credit rating agency, Credit-Rating, Ltd, assigned a “uaB” long-term credit rate to the Ukrtekhnofos’ bonds.
Ukrtekhnofos is one of the leading manufacturers of fertilizers in Ukraine. Its gross income from production was 53.4 million UAH in 2004.
© OPTIMA, 2004-2005