PhosAgro’s $500 Million Eurobond Offering

Dentons has advised PhosAgro on the transaction.

PhosAgro, one of the world’s leading phosphate-based fertilizer producers, executed its seven-year Rule 144A/Regulation S US$500 million 2.6% issue of loan participation notes due 2028. The transaction is the first-ever seven-year Eurobond issue for PhosAgro, and the issue has the lowest coupon rate to date for a Russian non-state owned corporate borrower issuing international debt securities with the same tenor.

PhosAgro plans to use the proceeds from the offering for general corporate purposes, and to refinance some of its indebtedness. PhosAgro is one of the world’s leading vertically integrated phosphate-based fertilizer producers in terms of production volumes of phosphate-based fertilizers and high-grade phosphate rock with a P2O5 content of 39% and higher. The Company is the largest phosphate-based fertilizer producer in Europe, the largest producer of high-grade phosphate rock with a P2O5 content of 39%, a top-three producer of MAP/DAP globally, one of the leading producers of feed phosphates (MCP) in Europe, and the only producer in Russia, and Russia’s only producer of nepheline concentrate (according to the RAFP). PhosAgro’s environmentally friendly fertilizers stand out for their high efficiency, and they do not lead to the contamination of soils with heavy metals.

BofA Securities, Citi, Gazprombank, J.P. Morgan, RBI, Renaissance Capital, SberCIB, UniCredit and VTB Capital acted as joint bookrunners for the transaction.

The Dentons team was led by Partner Tamer Amara (Picture; Moscow), Head of the Capital Markets practice in Russia, and partner Cameron Half (London), EMEA head of the US securities law practice, with support from Capital Markets counsel Filipp Petyukov (Moscow).

Involved fees earner: Tamer Amara – Dentons; Cameron Half – Dentons; Filipp Petyukov – Dentons;

Law Firms: Dentons;

Clients: PhosAgro;