Agriculture

Agricultural companies in Ukraine harvested 40.7 mln tonnes of grain and leguminous crops as of November 5, with an average yield of 2.82 tonne per ha. Agricultural companies processed only 14.4 mln ha of sowing area this season. Agrarians have sown about 9.1 mln ha with winter crops.

MHP [MHPC LI, U/R] has signed a new loan agreement for USD 50 mln with ING Bank. Funds will be used for working capital needs, primarily for purchase of sunflower seeds in local markets for processing into sunflower oil for export.

S&P has assigned “B-” long term corporate credit rating to Mriya [MAYA GR, BUY] and placed it on CreditWatch with positive implications. Also S&P has assigned “B” rating and “4” recovery rating to the planned Eurobond issue of Mriya. The planned volume of the issue is USD 300 mln. The road show will last from November 3 to 8. Final ratings will be assigned after the Eurobond issue.

Fitch Ratings has assigned “B-” rating (outlook stable) to the planned Eurobond issue of Mriya [MAYA GR, BUY]. Fitch has also assigned an expected recovery rating of “RR4”. The planned volume of the issue is USD 300 mln. The road show will last from November 3 to 8. Final ratings will be assigned after the Eurobond issue.

Sugar producers in Ukraine processed 8.1 mln tonnes of sugar beet and produced 0.93 mln tonnes of sugar as of October 27, which is 35.7% YoY more than in 2009. Sugar beet is being processed by 62 sugar factories, whereas it was processed in only 45 factories in 2009.

The Creativ Group [4C8A GR, CRGR UK BUY], a vertically integrated agricultural holding and a leading manufacturer of oils and fats in Ukraine, plans to launch pork production complex in Kirovograd region with capacity of 60 thsd heads by the end of 2011 year.

Avangard [AVGR LI, N/R], a leading Ukrainian agricultural holding that specializes in the production of eggs-in-the-shell and egg products, has placed five-year Eurobonds worth USD 200 mln with a 10% coupon and yield to maturity at 10.5% per annum. Avangard plans to use the funds raised for repayment of up to USD 170 mln of short-term debt held by the Company, as well as to enhance the liquidity of the holding.

Agricultural companies in Ukraine harvested 39.1 mln tonnes of grain and leguminous crops as of October 22, with an average yield of 2.76 tonne per ha. Agricultural companies processed only 14.2 mln ha of sowing area this season. Agrarians have sown about 8.6 mln ha with winter crops.

Agroton Public Ltd [A2TA GR, N/R], a diversified vertically integrated agricultural producer in eastern Ukraine, will place 26.2% of its shares on the Warsaw stock exchange at a price of PLN27 (USD 9.44), which is PLN 3 (USD 1.05) lower than the maximum offered price. The company will raise about USD 53.5 mln in the IPO. The offering comprises 5.67 mln newly issued ordinary shares.

The Antimonopoly Committee of Ukraine has allowed MHP to buy 3 agro enterprises in the Khmelnitskiy region: co-op "Ukraine", LLC "Balance", and "Start". Co-op "Ukraine" owns a subsidiary “Lanovetskoe” in the Ternopil region, which is involved in agriculture. LLC "Balance" and "Start" are involved in the production of grain and industrial crops and in cattle breeding and swine production.