It would have been an entirely unremarkable event several years ago: MHP, a Ukrainian chicken exporter, borrowing about €415 million from international bond investors.
But as Ukraine’s war with Russia approaches its fourth year, the deal completed Wednesday is being heralded as something of a watershed moment; a small step toward a return to the global capital markets.
MHP’s bond sale was the first for a Ukrainian company since Russia’s invasion in 2022. It attracted more than €2.1 billion of orders, according to a person with knowledge of the matter. The three-year bond will yield 10.5%, down from initial discussions in the low- to mid-11% range, the person said.
Without access to the Eurobond market — where companies raise funding in foreign, typically stable currencies from global investors — Ukrainian firms have been forced to extend or restructure existing debt, creating a growing wall of maturities.
Still, MHP has characteristics that other Ukrainian companies lack. It expanded beyond Ukraine last year through the acquisition of Spanish poultry and pork producer Grupo UVESA, and its bond sale is guaranteed by both its Ukrainian and European businesses.
“I think the short answer is that MHP is a rarity in the corporate landscape,” said Cem Karacadag, head of Barings’ global sovereign debt and currencies group.
Local Ukrainian businesses, both state-backed and private, have around €2.8 billion of bonds coming due in 2026. Not all are expected to secure new funding. Ukrainian Railways, for example, recently said it would suspend coupon payments and seek to restructure its debt.
MHP will use proceeds from the bond sale to fund a tender offer and buy back notes maturing on April 3. The company canvassed investors last year to gauge demand and pricing for a new deal.
S&P Global Ratings and Fitch Ratings both assigned “positive” outlooks to the company’s credit ratings earlier this month.
“MHP retains the support of its international and local lenders as it continues to service its financial obligations in full and on time,” S&P said, while warning that long-term refinancing risks “remain high,” S&P said.