KSG Agro has completed the placement of bonds of the holding company in the amount of USD 2.92 million.

KSG Agro has officially completed the placement of bonds of the holding company in the amount of USD 2.92 million. This was reported by the press service of KSG Agro.

KSG Dnipro, a part of KSG Agro, has completed a private placement of bonds for the amount of USD 2.92 million.

As a reminder, on August 31, 2023, KSG Agro Group's company, KSG Dnipro LLC, registered with the National Securities and Stock Market Commission (NSSMC) a private issue of two series of bonds in US dollars for a total amount of USD 3 million. TASKOMBANK acted as an underwriter of the issue. As a result of the issue, KSG Dnipro LLC raised USD 2.92 million at an annual interest rate of 7%. The buyer was an undisclosed private investor.

"We are quite satisfied with the results of the issue, and we plan to use the proceeds in accordance with the procedure established by the prospectus," comments Sergiy Kasianov, Chairman of the Board of Directors at KSG Agro. - "At the same time, the terms of credit financing by our regular financial partner and underwriter of the issue, TASKOMBANK, were significantly improved: in November 2023, the interest rate on hryvnia loans decreased by 5.5% compared to August 2023. As a result, the effective interest rate on the total portfolio decreased from 20.4% in August 2023 to 13.5% in November 2023. Part of the operating profit of the Group companies was also used to reduce the loan component of the portfolio, which has a higher interest rate."

As previously reported, the purpose of the bond issue by KSG Dnipro is to raise additional resources for the purchase of agricultural machinery that will increase yields, reduce repair costs by replacing old equipment with new, reduce downtime due to current and overhaul repairs, improve the quality of soil cultivation, which will lead to reduced wear and tear, and reduce the cost of operating machinery.