Ukraine agri-business MHP says will pay bond coupons per schedule

MHP SE

14/07/2022 14:04

LONDON, July 14 (Reuters) - Ukrainian chicken and grains
processor MHP  MHPCq.L   MHPC.PFT  will make all interest
payments on its bonds going forward, the firm's chairman John
Rich said on Thursday. 
    Bondholders granted the company a reprieve on interest
payments that had been due from March to May 2022, kicking in
just days after Russia invaded Ukraine on Feb 24.  urn:newsml:reuters.com:*:nTUC74F81T 
    "We believe we are in a relatively good position," Rich told
Reuters in an interview. 
    "We will be paying our bond coupons as per normal as per
schedule," he said, adding this would only change in case of
unforeseen events such as an "enormous" increase in military
activity in the western part of Ukraine.
    MHP has a $500 million bond outstanding  55302TAD7= , with
the next interest payment due in November. Maturing in May 2024,
the bond is currently bid at 40 cents in the dollar, Refinitiv
data shows.
    Other two external bonds from MHP expire only in 2026 and
2029, Rich said, meaning there are no chunky debt redemptions in
the near-term. But other Ukrainian companies could face tough
decisions, while the government too has a $1 billion bond
maturing in September, he noted. 
    "For the sovereign it is difficult, very difficult, and for
other large agricultural companies where lands have been lost
and that are in different parts of the industry there are very
difficult decisions to be made," Rich added.   

 (Reporting by Karin Strohecker and Sujata Rao)
 ((karin.strohecker@thomsonreuters.com; +442075427262; Reuters
Messaging: karin.strohecker.reuters.com@reuters.net))