Fortenova Grupa Prepares 4-Year Bond Worth Up to 1.2 Billion Euros

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Croatian food company Fortenova Grupa, the Balkan region’s biggest firm by sales, is preparing to issue a four-year bond worth up to 1.2 billion euros ($1.35 billion), it said on Friday, Reuters reported. The bond is aimed at financing a 1.1 billion euro liquidity loan the firm, formerly known as Agrokor, took out two years ago to avoid bankruptcy, it said in a statement. That followed an expansion drive based on high and expensive debt. “The interest rate will be 7.3% plus Euribor,” Fortenova said. The liquidity loan, whose maturity was last year extended until September of this year, has a progressive interest rate of up to 14%.The issue is pending approval by its shareholders - the largest of which is Russia’s Sberbank - and will be discussed at the company’s general assembly, scheduled for July 26. Read more