By KYIV. Nov 30 (Interfax-Ukraine) – KSG Agro has officially completed the private placement of bonds of KSG Dnipro LLC, part of the agricultural holding, worth $2.92 million.
“As a result of the issue, KSG Dnepr raised $2.92 million at an annual interest rate of 7%. The buyer was an undisclosed private investor,” the KSG Agro press service said in a statement on Tuesday.
The agricultural holding recalled that earlier in October 2023, the placement of bonds of Strong Invest LLC worth UAH 110 million was completed; their buyers were also private investors – legal entities whose names were not disclosed.
“We are completely satisfied with the results of the issues,” Serhiy Kasianov, KSG Agro Board Chairman, is quoted in the press release.
The conditions for credit financing of the agricultural holding were also significantly improved by the permanent financial partner and underwriter of the issues, TAScombank. In particular, in November 2023, the rate on hryvnia loans decreased by 5.5 percentage points compared to August 2023. As a result, the effective interest rate on the overall portfolio decreased from 20.4% in August to 13.5% in November 2023.
“Part of the operating profits of the Group’s companies was also used to reduce the credit component of the portfolio, which has a higher interest rate,” Kasianov added.
The agricultural holding recalled that the purpose of issuing bonds by KSG Dnipro is to attract additional resources for the purchase of agricultural equipment, which will increase productivity, reduce repair costs by replacing old equipment with new ones, reduce equipment downtime through current and major repairs, and improve the quality of processing soils, which will lead to their reduced wear and reduce the cost of operating equipment.
In the case of Strong Invest, it is planned to use them to attract additional financial resources for the reconstruction and repair of industrial premises and the purchase of pigs, according to the press release.
