print 14.07.2005

A press conference “First Bonded Loan of OJSC “Agroindustrial Association “Tsukrovik Poltavshchiny”

A press conference “First Bonded Loan of OJSC “Agroindustrial Association “Tsukrovik Poltavshchiny” was held today at the press-center of Credit Rating Agency. At the press conference it was declared that the company intends to issue corporate bonds for the total of 15 million UAH, and that this issue is ranked «uaА-» according to the national credit rating scale.

During the press-conference, Victor Ivanchik, the Head of the Supervisory Board of “Agroindustrial Association “Tsukrovik Poltavshchiny and the General Director of OJSC “Firm Astarta-Kiev” noted: “Ranking the interest bearing bonds of “Agroindustrial Association “Tsukrovik Poltavshchiny” according to the credit rating is an important step in carrying out the strategic plan of extending our presence in the capital markets, which symbolizes our openness towards the partners, investors and the public.”

Thus, the company is the first among sugar manufacturing companies in Ukraine that got a credit rating. Ranking the bonds as «uaA» according to the credit rating scale evidences the high level of credit to the borrower’s ability to perform its obligations under the conditions existing in the Ukrainian finance market; this credit rating belongs to the category of investment ratings (uaBBB, uaA, uaAA, uaAAA), notwithstanding that the obligation is more sensitive to unfavorable changes in commercial, finance and economic conditions than obligations having "uaAAA" and "uaAA" rating.

At the same time, Stanislav Dubko noted the fact that “Agroindustrial Association “Tsukrovik Poltavshchiny” is more sensitive to changes in commercial, financial and economic conditions than companies with higher rating. However, these factors would similarly affect the entire sugar industry of Ukraine and the market in general.

The organizer and the underwriter of the issue of the first bonded loan of “Agroindustrial Association “Tsukrovik Poltavshchiny” is the CJSC “Alfa-Bank”

“Raising funds through the issue of bonds would enable the company to optimize the resources, to diversify the sources of financing, and to efficiently manage the debt structuring”, - said Vadim Minchenko, the Head of the Fixed Income Securities Department of CJSC “Alfa-Bank”. – “This issue may be of a great interest for the buyers, taking into account a high interest rate and the stable growth of the industrial output of the company which is one of the leaders of the strategically important segment of the market. In future the profitability of securities placement may be reduced to the average market level.”

The company intends to allocate a part of funds raised through the issue of bonds for the replenishment of the working capital of OJSC “Agroindustrial Association “Tsukrovik Poltavshchiny” and further purchase of sugar beet to be processed during this season. The balance of funds will be used to purchase the equipment for the purpose of upgrading sugar-mills, which, according to Mr. Ivanchik, would allow them to improve technological indices of their sugar manufacturing facilities.

For reference:

OJSC “Agroindustrial Association “Tsukrovik Poltavshchiny” – is a manufacturer of granulated sugar of sugar beet, molasses or beet pulp. The Association was created in 2000 and is a young company in the Ukrainian sugar market. OJSC “Agroindustrial Association “Tsukrovik Poltavshchiny” consists of four structural subdivisions (three sugar-mills and a communications center): Jareskiv Sugar-Mill, Kobelyaki Sugar-Mill, Veselopodolsk Sugar-Mill. The main founder of the Association is OJSC “Firm Astarta-Kiev”, one of the three leaders in the Ukrainian sugar industry.

OJSC “Firm Astarta-Kiev” is a group of companies operating within the agroindustrial complex of Ukraine, and one of the most powerful local operators in the Ukrainian sugar market. Currently the company is a structure with strictly arranged procurement and distribution system and well-developed productive assets.

Alfa-Bank (Ukraine) – is an organizer and an underwriter of the issue of the first bonded loan of OJSC “Agroindustrial Association “Tsukrovik Poltavshchiny”. The Bank holds leading positions among the managers of placement of corporate bonds in the market. In 2001-2005, the bank acted as an organizer and successfully completed the placement of corporate bonds for 1 billion UAH.

Credit Rating Agency – is the first independent Ukrainian rating agency operating exclusively in the sphere of services connected with awarding credit ratings. As of July 2005, credit rating according to the national scale of the independent Ukrainian credit agency Credit Rating was given to and has been maintained by 9 cities, 40 companies, 9 local banks and 1 insurance company. The total of bond issues for which the Agency awarded the credit rating is 2 billion UAH.