Ekosem-Agrar publishes details of new corporate bond

DGAP-News: Ekosem-Agrar AG / Key word(s): Issue of Debt

26.06.2019 / 17:00
The issuer is solely responsible for the content of this announcement.

Ekosem-Agrar publishes details of new corporate bond

  • Issue volume of up to EUR 100 million
  • Interest rate 7.50 % p.a.; term of 5 years
  • Key objectives: Growth financing and optimization of the medium- to long-term financing structure
  • Exchange offer for investors in ESA Bond 2012/2021 as part of the new issue

Walldorf, 26 June 2019 - Ekosem-Agrar AG, the German holding company of Russian milk producer EkoNiva Group, intends to issue a new corporate bond with a volume of up to EUR 100 million. The aim of the issue is to generate additional funds in a favorable environment to continue the profitable growth path and to secure the medium- to long-term financing structure at an early stage. The additional funds from the bond issue will be used to finance the purchase of farms and agricultural land.

The new bond has an interest rate of 7.50% p.a. The term is five years. The issue will be carried out by way of a public offering in Luxembourg and Germany. The required prospectus was approved today by the Commission de Surveillance du Secteur Financier (CSSF). In addition, the bonds will be offered to institutional investors in selected European countries by private placement.

Wolfgang Bläsi, CFO of Ekosem-Agrar AG: "The corporate bonds secure our access to the capital markets. Here we have established ourselves as a reliable player and built up a strong investor base. The planned issue complements the low-interest project financing provided by Russian banks. In conjunction with the exchange offer, we are also improving our maturity profile and continuing to offer investors a very attractive investment opportunity."

The issue includes a voluntary exchange offer for the Ekosem-Agrar Bond 2012/2021 (WKN: A1MLSJ / ISIN: DE000A1MLSJ1) due 2021 with a volume of EUR 50 million. Holders of the Bond 2012/2021 will receive a new Bond 2019/2024 plus a cash payment for each converted old bond. This consists of an exchange premium of EUR 25.00 and the proportionate accrued interest of EUR 31.40 attributable to the exchanged Bond 2012/2021. The bondholders participating in the public exchange offer will also be granted a multiple purchase option.

The subscription period for the Public Offer and the Exchange Offer begins on 28 June 2019 and is expected to end on 26 July 2019 at 14:00 (subject to extension or early closure). It is planned to include the Bond 2019/2024 for trading in the general open market (Freiverkehr) of the Stuttgart Stock Exchange. As in previous years, Ekosem-Agrar has committed itself to transparency in its financial reporting, including annual and semi-annual reports, which goes far beyond the legal requirements.

The securities prospectus approved by the CSSF is available for download at https://www.ekosem-agrar.de/en/investor-relations/ and www.bourse.lu.

Key data of the Ekosem-Agrar corporate bond 2019/2024

Issuer Ekosem-Agrar AG, Walldorf (Germany)
Issue volume up to EUR 100,000,000 (thereof exchange max. EUR 50,000,000)
Denomination 1,000 Euro
Interest rate 7.50 % p.a.
Term 5 years
Interest payment annually, always on August 1
Paying agent Bankhaus Gebr. Martin
Redemption price 100 %
Maturity August 1, 2024 (Call Option from August 1, 2021)
Covenants Change of control, payout block, pari-passu clause, negative pledge, other termination rights, publication of consolidated half-year and annual financial report
Type of security Partial bearer bonds
Stock exchange Stuttgart Stock Exchange (general open market - "Freiverkehr")


About Ekosem-Agrar

Ekosem-Agrar AG, Walldorf, is the German holding company of the Ekoniva Group, one of the largest Russian agricultural companies. With a herd of almost 149,000 cattle in milk production (thereof about 77,640 dairy cows) and a milk output of approx. 2,070 tons of raw milk per day as of 30 April 2019, the company is the largest milk producer in the country. The Group controls an agricultural land area of more than 554,000 hectares and is also one of the leading Russian seed producers. The founder and CEO of the company is Stefan Dürr, who has been active in the Russian agricultural sector since the end of the 1980s and has been instrumental in modernizing the industry in the past three decades. In 2009, he was awarded the Order of Merit of the Federal Republic of Germany in recognition of his contributions to the German-Russian Dialogue on Agriculture. The Group employs more than 13,000 people and has a presence in nine regions in Russia. Ekosem-Agrar generated a total output of EUR 377 million and adjusted EBITDA of EUR 116 million in 2018. Further information is available at: www.ekosem-agrar.de

Ekosem-Agrar Contact

Adrian Schairer // T: +49 (0) 6227 3585 936 // E: ir@ekosem-agrar.de

Irina Makey // Ekosem-Agrar AG // Johann-Jakob-Astor-Str. 49 // 69190 Walldorf // T: +49 (0) 6227 3585 919 // E: irina.makey@ekosem-agrar.de

Press / Investor Relations

Fabian Kirchmann, Anna-Lena Mayer // IR.on AG // T: +49 (0) 221 9140 970 // E: presse@ekosem-agrar.de



This notice does not constitute an offer of securities. A decision to invest in notes of Ekosem-Agrar AG should only be made on the basis of the securities prospectus approved by the Commission de Surveillance du Secteur Financier (CSSF) and notified to the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), which is published on the website of the Issuer at www.ekosem-agrar.de/investor-relations and also on the website of the Luxembourg Stock Exchange at www.bourse.lu.

This notice and the information contained therein are not to be distributed, directly or indirectly, in or within the United States of America, Canada, Australia or Japan.


26.06.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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