Business news from Ukraine

Business news from Ukraine

Yavir-Invest issues first bonds for development of soybean production

Yavir-Invest LLC (Berdychiv, Yavoriv district, Lviv region), a member of the Kormil agro-industrial group that processes soybeans, is issuing its debut bonds.

According to the National Securities and Stock Market Commission (NSSMC), it registered the issue of A and B series bonds of Yavir-Invest at its meeting on Tuesday.

According to the regulator’s website, these are private issues, and there is no information on their parameters.

According to Kormil’s website, Yavir-Invest processes 100 thousand tons of soybeans annually, producing more than 80 thousand tons of high-protein Herbal Soya and 15 thousand tons of soybean oil.

Kormil Group was founded in 2006 as an importer of Agrolife Feed, which later set up its own production. It also includes the Agrolife Transservice poultry farm with a capacity of up to 5 million broilers per year, a plant for the production of premixes, concentrates and mixed fodder, and Danylo Halytskyi LLC, which grows agricultural products on 4,000 hectares. The group employs over 400 people.

According to YouControl, Yavir-Invest’s revenue in the first half of this year decreased by 2.3% to UAH 303.38 million, and net profit by 3.4% to UAH 4.18 million. As of the middle of this year, the company’s authorized capital amounted to UAH 2.01 million, and its equity capital was UAH 60.08 million.

The company’s beneficiary is Ihor Patsula from Yavoriv.

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“Nova Poshta” has issued bonds for one bln hryvnias

Nova Poshta LLC, the largest logistics operator in Ukraine and a member of the NOVA group, has fully placed its issue of interest-bearing unsecured F series bonds with a total nominal value of one billion UAH.
According to the National Securities and Stock Market Commission (NSSMC), the company registered the report on the results of the issue on August 14, while the issue was initially registered on April 26 this year.
According to the report for the first half of 2024, the bonds will mature on June 10, 2026, bear interest at 16% per annum, mature on June 5, 2026, and have a nominal value of UAH one thousand.
Nova Poshta registered a report on the placement of the previous series E issue of the same volume with maturity on August 8, 2025 and an interest rate of 17% per annum with the NSSMC on July 4 this year. Most of it, worth UAH 650 million, was purchased in May by Oschadbank (Kyiv). It was clarified that this is the third transaction since 2019 for the state-owned bank to finance Nova Poshta by purchasing corporate bonds.
Both series of bonds were placed without a public offering on the over-the-counter market.
As of the middle of this year, Nova Poshta’s liabilities on the E series bonds amounted to UAH 995.16 million, F series – UAH 994.88 million, and on the previously issued D series bonds maturing at the end of January 2025 – UAH 818.51 million.
As of the end of June this year, Nova Poshta’s total liabilities on bonds amounted to UAH 2 billion 808.55 million, while its liabilities to banks amounted to UAH 3 billion 136.12 million, and the total amount of liabilities and collateral amounted to UAH 15 billion 562.04 billion.
As reported, in 2023, Nova Poshta made two bond issues – “C” and “D” – each with a nominal amount of UAH 800 million. The C series bonds were issued for a 12-month term with a 24% p.a. rate, while the D series bonds were issued for 20 months with a 23% p.a. rate.
Earlier, in February 2023, the company redeemed the UAH 700 million Series B bonds issued in March 2020.
In the first half of 2024, Nova Poshta LLC increased its unconsolidated net income by 20.1% to UAH 20.12 billion, but the company’s net profit decreased by 38.1% to UAH 1.49 billion.

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OTP BANK started selling domestic government bonds from its own portfolio

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JSC OTP BANK has introduced a new service – sale of domestic government bonds from its own portfolio in the OTP Bank UA application. From now on, customers have the opportunity to purchase domestic government bonds at any convenient time, regardless of the date of the Ministry of Finance of Ukraine’s auctions.

“The new functionality opens up even more opportunities for investing in government securities, as well as allows you to choose the optimal bond rate and maturity. The service is already available online to all individuals who have opened a securities account in any branch of the Bank,” said Valeria Ovcharuk, product owner of OTP Bank.

According to her, the process of buying government bonds is convenient and fast. “The OTP Bank UA app offers an easy interface for purchasing government bonds. Just a few clicks and the securities are in your bond portfolio. It is a reliable and profitable investment in the future, as the repayment of domestic government bonds is 100% guaranteed by the state,” emphasized Ovcharuk.

Investing in domestic government bonds is not only an opportunity to support the financial stability of Ukraine in times of war, but also a good opportunity to diversify your savings and receive additional income in both hryvnia and foreign currency.

Last fall, OTP BANK opened the opportunity to buy domestic government bonds directly at auctions of the Ministry of Finance through the OTP Bank UA application. During 2023, the Bank’s customers purchased domestic government bonds for a total amount of UAH 6.3 billion in equivalent, which is 153% more than in 2022.

As a reminder, in 2023, OTP Bank was ranked fourth among Ukrainian banks in the overall rating of primary dealers, according to the Ministry of Finance of Ukraine.
The status of a primary dealer provides the exclusive right to participate in the placement of domestic government bonds conducted by the Ministry of Finance, both on its own behalf and for clients of individuals and legal entities, as well as banks and financial companies that do not have such a status.

To learn more about investing in domestic government bonds through the OTP Bank UA app, please follow the link.

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