Industrial Milk Company announced potential issue of bonds for the total worth of USD 25 M. “Burat-Agro”, one of the subsidiary companies of the holding was named as the primary issuer. Shares will be placed on “Perspektiva” and “PFTS” Ukrainian stock markets. VTB Bank and “Investment Capital Ukraine” were named as underwriters of the transaction. Bonds will be traded until June 26, 2014 with 14% annual interest, quarterly payments. Bonds are secured by Industrial Milk Company S.A. and “Chernigovskaya industrialnaya molochnaya companiya”. Company stated that USD 17.5 M will be spent on purchase of new equipment and materials, while USD 7.5 M will be spent on maintenance and storage of stock.

AgroInvest comment: IMC issuing shares on local stock exchanges shows interest of local investors in placing their funds in local companies, which shows their attractiveness. Lack of interest on foreign stock markets at the moment led to rational decision of aiming for local funds.

For more detail please refer to the UAIndex Daily (June 25 issue).

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