Kernel-Trade registers $50M bond issue on Ukrainian exchange
Ukraine’s securities regulator registered a $50 million public foreign-currency corporate bond issue by Kernel-Trade for open sale on the PFTS exchange. The unsecured bonds carry a 5.75% annual rate for the first six interest periods and are scheduled for redemption in November 2029.
Key points
- The issue comprises 50,000 bonds with a $1,000 face value each.
- The bonds will be offered through an open sale on the PFTS stock exchange.
- The rate is 5.75% annually for the first six interest periods, or about 18 months.
- After the initial period, the issuer’s supervisory board will set the rate within 2% to 10% annually.
- Interest will be paid quarterly, with redemption scheduled for November 2029.
- Proceeds are earmarked 60% for agricultural purchases, 30% for oilseed processing and 10% for trade, export and logistics.
- Payments are planned in US dollars, subject to current currency legislation.
Why it matters
The transaction gives Kernel-Trade access to dollar-denominated financing for agricultural procurement, oilseed processing, trade, exports and logistics. It is also described as the first public issuance of foreign-currency corporate bonds of this size in Ukraine, expanding domestic access to such financing while exposing investors to credit, interest-rate, liquidity and currency-regulation risks.
What happened
Ukraine’s National Securities and Stock Market Commission registered Kernel-Trade’s $50 million bond issue for public placement on the PFTS exchange. The issue includes 50,000 unsecured bonds with a $1,000 face value. Their rate will be 5.75% annually for six interest periods, after which the issuer’s supervisory board will determine it within a range of 2% to 10%. Interest will be paid quarterly, and the bonds are scheduled to be redeemed in November 2029. Payments in US dollars are planned where permitted by current currency legislation. Raiffeisen Bank and Univer Capital are serving as organizers.
How Ukrainian sources describe it
Ukrainian coverage emphasizes the regulatory registration, the bond terms, the planned use of proceeds and the significance of the transaction for the domestic corporate bond market. It also links the financing to Kernel’s agricultural operations, damaged facilities and the higher costs of wartime logistics.
Background
Kernel is one of Ukraine’s largest agricultural holdings and a leading sunflower-oil exporter. Following the start of the full-scale war, it changed its logistics routes because of blocked seaports and disruptions to the grain corridor. In the 2026 financial year, which ended on June 30, Kernel reported revenue of $4.4 billion and EBITDA of $558 million. Its board recommended withholding dividends so funds could go toward repairing damaged facilities and covering higher logistics costs.