Kernel to launch US dollar bond offering on November 9 with 5.75% annual yield

Kernel-Trade, part of the Ukrainian agricultural holding Kernel, will begin placing Series D corporate bonds denominated in US dollars on November 9, 2026. The bonds will offer an annual yield of 5.75% for the first 18 months, after which the rate may vary between 2% and 10%. The offering will take place on the PFTS Stock Exchange, with bond redemption scheduled for November 2029.

Each bond has a nominal value of $1,000, while the minimum subscription requires the purchase of 10 bonds worth a total of $10 thsd. Investors will be able to purchase the bonds in foreign currency on the primary market, while secondary market purchases will be available in Ukrainian hryvnia at prices linked to the official exchange rate of the National Bank of Ukraine (NBU). All bond payments are expected to be made in US dollars. However, if new foreign exchange restrictions are introduced, the company may settle payments in hryvnia at the NBU exchange rate.

Investment experts report strong demand for the new Kernel-Trade bonds. According to Artem Shcherbyna, Investment Director at Capital Times, investor interest in the securities is exceptionally high. The main reasons include the limited availability of foreign currency investment instruments in Ukraine and Kernel’s strong brand recognition. However, participation by individual investors in the primary offering may be complicated by SWIFT payment requirements and existing foreign exchange restrictions. According to the bond prospectus, estimated additional investor expenses could amount to UAH 10 thsd.

Despite strong interest in the bonds, analysts highlight several risks. Changes in foreign exchange regulations could affect payment procedures, while Russian attacks on production and logistics infrastructure pose additional threats to the agricultural holding’s operations. Furthermore, a potential deterioration in the company’s financial position could affect its ability to meet obligations to bondholders on time.

Experts also identify Kernel’s corporate history as an additional risk factor. In 2023, the board of directors of Kernel Holding decided to delist the company’s shares from the Warsaw Stock Exchange, prompting objections from minority shareholders. They challenged the decision in a Luxembourg court, after which the Polish regulator suspended the delisting procedure pending the resolution of legal claims. Thus, the new bond issue offers investors an opportunity to earn returns in foreign currency but also involves financial, regulatory and corporate risks.

Tags: Kernel, corporate bond