MHP SE Advances Eurobond Strategy Amid Ukraine’s Debt Pressures

MHP SE, a Ukrainian food‑product conglomerate listed on the London Stock Exchange, has announced the initiation of a new eurobond mandate and a tender offer to refinance existing debt. The company’s subsidiaries—including Mironivska Ptahtofabrika, Zernoproduct MHP, Agrofort, and Oril‑Lider—have convened to grant a pledge to MHP Lux S.A., the entity that will issue the forthcoming bonds on the international capital markets.

The proposed issuance is projected to reach a notional amount of up to US$1 billion, with a coupon rate capped at 25 % per annum and a maturity horizon of up to five years. Citibank N.A., through its London branch, is slated to act as the trustee, while J.P. Morgan SE is expected to serve as lead manager. These arrangements align with the company’s cautious debt‑management policy, as detailed in its third‑quarter report, which underscored a disciplined approach to borrowing amid the volatile Ukrainian macro‑environment.

Contextualizing the Move

The timing of this refinancing initiative coincides with a broader wave of debt maturities across Ukraine. Bloomberg reports that roughly US$3 billion of bonds are due this year, and state‑owned enterprises such as Ukrzaliznytsia are already suspending coupon payments on more than US$1 billion of debt. These developments highlight the strain on Ukrainian firms to maintain liquidity while operating under sustained military pressure.

MHP SE’s decision to seek external financing reflects a strategic effort to secure funding at potentially favourable terms before the scheduled repayment of its existing eurobond portfolio, which stands at US$550 million. By leveraging its robust operational profile—spanning poultry, grain, and ancillary agricultural activities—the company aims to strengthen its balance sheet and preserve operational continuity across its supply chain.

Financial Snapshot

  • Current share price (13 Jan 2026): 7.98 GBX
  • 52‑week high (13 Jan 2026): 8.16 GBX
  • 52‑week low (6 Apr 2025): 4.50 GBX
  • Price‑to‑earnings ratio: 3.64

These metrics illustrate a relatively modest valuation relative to earnings, suggesting that investors perceive a stable income stream from MHP’s diversified agricultural operations.

Implications for Stakeholders

The tender offer will provide shareholders with an opportunity to sell existing equity stakes in exchange for the new bond structure, potentially offering liquidity and a hedge against the company’s operational risks. For creditors, the high coupon rate—though above average for sovereign issuers—reflects the perceived risk premium associated with Ukrainian corporate bonds in an environment of escalating conflict and fiscal uncertainty.

Should the bond issuance proceed, MHP SE will join a growing cohort of Ukrainian enterprises that are restructuring debt to mitigate liquidity challenges. The company’s prudent management of its debt load, coupled with an active engagement in international capital markets, may position it favorably against peers grappling with more constrained financing options.

In summary, MHP SE’s move to secure up to US$1 billion of new eurobonds represents a proactive response to both internal funding needs and the broader financial pressures confronting Ukrainian corporates. By aligning with reputable global financial institutions and maintaining a disciplined debt strategy, the company seeks to safeguard its operational resilience and shareholder value in an uncertain geopolitical landscape.