Capital/Financing Update • Jun 24, 2025
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date: 2025-06-24 17:15:00+00:00
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PhosAgro Successfully Completes Landmark Transaction for Russian Debt Market at Lowest Rate since Start of the Year
Moscow – PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading producers of phosphate-based fertilizers, successfully completed the book build on 24 June 2025 for an additional placement of BO-02-03 series foreign currency bonds on the Russian market.
The placement price was set at 102.00% of the nominal value, enabling PhosAgro to raise funding equivalent to USD 400 million. The final price corresponds to an implied coupon rate of 6.53% per annum.
The order book received more than 30 orders from institutional investors and a wide range of private banks and brokerage platforms. Thanks to strong investor demand, the initial price guidance was revised upward by 100 bps.
The additional placement is scheduled to take place on 26 June 2025.
Alongside the additional placement, PhosAgro is repurchasing series BO-02-01 bonds set to mature on 17 November 2026. The bonds carry a monthly floating coupon rate of the key rate plus 2.0% per annum. The bond submission period for the buyback closed on 24 June 2025, and the final repurchase price was set at 101.50% of the nominal value.
Gazprombank (JSC) is acting as the bookrunner and placement agent for the additional issue of BO-02-03 series bonds as well as the repurchase agent for the BO-02-01 series notes.
“PhosAgro has completed a unique deal for the Russian market in terms of managing a public debt portfolio: placing a dollar-denominated issue settled in roubles in exchange for rouble-denominated bonds being repurchased. The transaction achieved the lowest implied coupon rate among all foreign currency bond placements in Russia’s primary market since the beginning of 2025. This is not just an innovation but an example of an effective solution for managing public debt that was made possible and executed in the Russian market,” said Denis Shulakov, First Vice President of Gazprombank (JSC).
“Financial sustainability and effective debt management remain key priorities for PhosAgro. This transaction is a unique example of refinancing an existing loan portfolio in the Russian market, enabling us to place foreign currency bonds on exceptionally favourable terms. The deal enabled us to reduce our borrowing costs and optimize the structure of our debt portfolio. The strong demand from investors reflects confidence in our strategy and our standing as a reliable borrower in capital markets,” emphasized Alexander Sharabaika, PhosAgro’s Deputy CEO for Finance and International Projects.
About the Company
PhosAgro (www.phosagro.ru) is a vertically integrated Russian company and one of the world’s leading producers of phosphate-based fertilizers and high-grade phosphate rock with P2O5 content of 39% or more (according to the IFA). PhosAgro’s high-performance fertilizers produce crops with advanced features.
PhosAgro Group is the largest producer of phosphate-based fertilizers in Europe (by total combined capacity for the production of DAP, MAP, NP, NPK and NPS fertilizers, according to the CRU), the largest global producer of high-grade phosphate rock with P2O5 content of 39% (according to the IFA), one of the leading producers of MAP and DAP fertilizers globally, one of the leading producers of monocalcium feed phosphates (MCP) in Europe – and the only such producer in Russia – and Russia’s only producer of nepheline concentrate.
PhosAgro’s main products, including phosphate rock, 58 grades of fertilizers, feed phosphates, ammonia and sodium tripolyphosphate, are used by customers in around 100 countries spanning all the world’s inhabited continents. The Company’s priority markets beyond Russia and the CIS are Latin America, Europe and Asia.
The Company’s shares are traded on the Moscow Exchange, and its global depositary receipts (GDRs) are listed on the London Stock Exchange (MOEX and LSE ticker: PHOR).
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