The first Eurobond issue in a full-scale war. Why MHP's success is important for Ukrainian companies

Ukrainian agro-industrial MHP Group Yuriy Kosiuk posted Eurobonds worth $450 million with an annual interest rate of 10.5% and maturity in 2029. This is the first Eurobond placement by Ukrainian companies since the beginning of the full-scale invasion.The main purpose of issuing the bonds is to manage the debt portfolio. It was planned that the company would repay $450 million of debt with the bonds, and another $100 million with its own funds.But on February 3, it became known that MHP will place additional bonds worth $100 million with a similar interest rate and maturity date. MHP stated that the additional placement was made "in response to significant investor interest and favorable market opportunities."Why is this a landmark event for the Ukrainian capital market? What will it mean for Ukrainian investors? And which other companies might follow MHP in issuing Eurobonds? Read more in the article LIGA.netWhat MHP saysThe company calls the decision to place Eurobonds not risky, but ambitious. MHP told Liga.net in a comment. "We deliberately entered the market early – three months before the Eurobond maturity date – to reduce risks and not depend on the time factor," the company says.The amount of the new issue, the maturity date, and the interest rate were finally approved during the bookbuilding and pricing process. The terms of this issue will not be changed thereafter, although the instrument itself will be freely traded on the exchange, and therefore the value of the bonds will change according to market conditions."At the same time, the high oversubscription (five times greater than MHP's needs) confirmed the correctness of the chosen approach and the level of investor confidence in MHP," the company said.Oversubscription is a situation where investor demand for securities exceeds the volume that the issuer plans to place.MHP plans to continue placing Eurobonds. The company states that it intends to continue taking advantage of the capital market.Read alsoUS and Eurozone bonds. How much can Ukrainians earn?What does this mean for Ukrainian investorsAfter the start of the full-scale war, Ukrainian issuers found themselves in a zone of increased distrust from international investors. The risks of default, currency restrictions, and payment freezes significantly limited access to external financing. All this time, businesses either serviced old debts or went for restructuring. This is according to Mykhailo Demkiv, a financial analyst at the ICU investment group.In this context, the placement of MHP's Eurobonds became a prime example of the return of investor interest, given the company's CCC+ credit rating from S&amp;P. This rating means that the issuer is in a high credit risk zone and remains vulnerable to negative changes in the macro environment, but is able to meet its debt obligations under favorable conditions."The company replaced expensive and urgent debts with long-term and cheaper ones. It's like taking out a new loan with a lower interest rate and a longer term," explains Alina Kaluzhinova, a lawyer in the business support practice at the Juscutum law firm.The issuance of Eurobonds in itself does not change the situation for the local capital market, as Eurobonds are aimed at international buyers. At the same time, the deal sent a clear signal: global markets are not completely closed to Ukrainian business, despite the war and high country risks.This case is considered a landmark because it ended the several-year isolation of Ukrainian business.It should be noted that Ukrenergo last issued Eurobonds in 2021. Therefore, new windows of opportunity are opening for Ukrainian companies, and the 10.5% interest rate is quite high for a country at war. Viktor Syzonenko, an advisor at the Solomon's Solutions law firm, emphasizes that this is a sign of trust and a signal of stability.An alternative to loans from local banks is emerging for Ukrainian companies. "Now big business understands that refinancing old debts through new Eurobonds is possible even during the war," says Syzonenko.A secondary market is also being formed. When MHP's securities start trading, investors see the real market price of Ukrainian risk, which allows them to plan new investments. Against this background, the pressure on the foreign exchange market decreases, as companies attract foreign currency from abroad to repay old debts, rather than buying it domestically on the interbank market.Read also"We don't use the word 'competitors' in the company" – the first interview with Nova Poshta CEO Yevhen TafiichukWhich other companies can issue EurobondsThe placement of Eurobonds is of interest to large non-state corporations, primarily those with planned Eurobond maturities in the first half of 2026. This was stated by Serhiy Lyashenko, head of projects and programs in the investment department of Oschadbank. "For example, Metinvest has to repay bonds worth $440 million in April, and Interpipe – $240 million in May 2026," Lyashenko adds.At the same time, the parameters of this agreement will serve as a benchmark for Eurobond issues by other companies. The maturity period is 3 years, the coupon rate is about 10%, the volume is up to $500 million, and the credit rating of the issuer or guarantor of the issue is at the sovereign CCC level."This is a positive signal, but it is unlikely to mean the market is open to everyone. Most likely, other companies will not be able to raise funds on market terms in 2026. The MHP case is currently an exception," believes Mykhailo Demkiv.To enter the Eurobond market, a company must have a significant share of export revenue and transparent reporting. Viktor Syzonenko, Advisor at Solomon's Solutions Law Firm, believes that potential candidates are:DTEK: The energy sector requires massive investment in recovery. Successful debt restructuring in the past and the availability of export capacity make them a logical candidate.Metinvest: As one of the largest steel exporters, the company has experience with Eurobonds and an international reputation, which is critical for investors.Kernel: The agricultural sector is currently the most understandable for Western funds. After MHP, large agricultural holdings have the greatest chances of success.Interpipe: Viktor Pinchuk's company, which is actively operating in Western markets, may also consider this instrument for modernizing its production.State-owned giants: The MHP path may be attempted to be replicated Ukrenergo or Naftogaz, although their terms for attracting financing often depend on the state's agreements with the IMF."MHP's success was based on the fact that in the first nine months of 2025, their net profit increased by 52.5% ($215 million), and a significant portion of their assets are located outside active combat zones. For other companies, these figures will be the main entry ticket," says Viktor Syzonenko.

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