Kernel to issue $50 million in foreign currency bonds: how the funds will be used
Ukraine's National Securities and Stock Market Commission (NSSMC) has registered a $50 million foreign currency-denominated corporate bond issue by Kernel-Trade, part of Kernel Group. This is the first public offering of foreign currency-denominated corporate bonds of this size on the Ukrainian market, according to the NSSMC.
The issue consists of 50,000 bonds with a face value of $1,000 each. The bonds will be offered publicly on the PFTS Stock Exchange.
The coupon rate will be 5.75% per annum for the first six interest periods (approximately 18 months). After that, the rate will be determined by the issuer's Supervisory Board within a range of 2% to 10% per annum.
Interest payments will be made quarterly, with bond maturity scheduled for November 2029.
US dollar settlements will be subject to applicable Ukrainian foreign exchange regulations, particularly National Bank of Ukraine Resolution No. 18.
According to the terms of the issue, the proceeds will be used to finance the company's operations. Specifically, 60% will be allocated to agricultural commodity purchases, 30% to oilseed processing, and the remaining 10% to trading, export, and logistics operations.
Kernel's press office said that approval of the bond prospectus is a regulatory step in preparing for the issue. The placement is tentatively scheduled for November 2026, although the company will make the final decision on whether to proceed based on market conditions.
The company views the bond issue as an opportunity to diversify the group's long-term funding sources, complement its existing Eurobond financing, and contribute to the development of Ukraine's capital market.