Kernel-Trade to issue $50 mln in foreign currency bonds to finance agricultural operations

Ukrainian agribusiness company Kernel-Trade plans to issue Series D corporate bonds worth $50 mln between November 9 and 20, 2026, with an initial annual interest rate of 5.75%. Ukraine’s National Securities and Stock Market Commission has registered the issue, which will become the country’s first public offering of foreign currency-denominated corporate bonds of this size. The company intends to use the proceeds primarily to purchase agricultural commodities and finance oilseed processing.

The offering will comprise 50 thsd bonds with a face value of $1,000 each. The securities will be unsecured, meaning they will not be backed by collateral. The 5.75% annual interest rate will apply for the first 18 months, after which the company’s supervisory board may adjust it within a range of 2–10%. Interest payments will be made quarterly, while bond maturity is scheduled for November 2029. Payments are planned in US dollars, subject to applicable foreign exchange regulations.

Kernel-Trade intends to allocate approximately 60% of the proceeds, or $30 mln, to agricultural commodity purchases. Another 30%, or $15 mln, will be used to finance oilseed processing, while the remaining 10%, or $5 mln, will support trading, export and logistics operations. Most of the financing will therefore be directed toward the company’s ongoing agricultural and vegetable oil business activities.

The offering is being arranged by Raiffeisen Bank and Univer Capital, with EY providing advisory services on its structure. Investors will be able to purchase the bonds through licensed brokers with access to trading on the PFTS Stock Exchange. Kernel views the offering as a way to diversify its long-term funding sources, complementing traditional financing instruments used by major Ukrainian companies, including foreign bank loans and Eurobonds.

For the 2026 financial year ended June 30, Kernel Group’s revenue increased by 7% to $4.4 bln, while EBITDA rose by 20% to $558 mln. Despite improved financial results, the board of directors recommended against paying dividends, retaining funds to support operations, repair damaged production facilities and cover additional logistics costs. The new bond issue is expected to provide additional resources for the company’s agricultural procurement, processing and export activities.

Tags: Kernel, Oilseed