AVELLUM advises MHP on its return to global Eurobond markets

AVELLUM acted as the Ukrainian legal counsel to MHP Group (“MHP”) in connection with the issuance by MHP Lux S.A. of USD450 million 10.500% guaranteed notes due 2029 and subsequent USD100 million tap issuance of the same notes.

This transaction marks the successful return of a Ukrainian business to the international Eurobond markets following the outbreak of the full-scale war in 2022. In addition to reflecting strong investor confidence in the development and future growth of MHP, the deal potentially reopens the global capital markets for other Ukrainian companies, despite ongoing wartime challenges.

The proceeds of the initial offering of USD450 million notes, together with an additional USD100 million tap issuance, will be used to refinance MHP’s existing international debt through a comprehensive tender offer and redemption of its outstanding USD550 million notes due 2026. Such refinancing will significantly strengthen MHP’s debt profile, providing greater capacity to execute its long-term business strategy under unprecedented conditions.

Glib Bondar, senior partner at AVELLUM, commented: “This deal goes far beyond a refinancing transaction. It demonstrates that, even in wartime conditions, Ukrainian businesses with the right business model, strong fundamentals, and governance can successfully access international capital markets. MHP’s return to the debt capital markets sends an important signal of confidence to investors and provides an example for other Ukrainian companies looking to re-enter the global capital sources”.

Rodion Teslia, Head of M&A and Corporate Finance (Legal) at MHP, noted on its cooperation with AVELLUM: “AVELLUM has once again proved to be a reliable partner for MHP. A key success factor in this transaction was speed – fast, even immediate execution – and AVELLUM’s team consistently delivered exactly that. They were proactive throughout, anticipating legal risks and mitigating them before they could become issues”.

MHP is a leading Ukrainian food and agricultural group, recognised as one of the largest poultry producers in Europe. According to WattPoultry international ranking, MHP also ranks among the world’s 10 poultry producers.

The key AVELLUM transactional team was led by senior partner Glib Bondar, with significant support from managing associate Mariana Pylypenko, of-counsel Yurii Krasnoliudskyi, senior associate Andrii Kroshko and associates Nikita Tipikin-Holovko and Elina Kryhan. Partner Vadim Medvedev, together with senior associate Anna Sokur and associate Yana Hordenko, provided support on tax matters of the transaction.