March 10, 2025 14:01 GMT
EM CEEMEA CREDIT: ARAGVI: Tap of 2029 bonds
EM CEEMEA CREDIT
Trans-oil Group (ARAGVI: -/B/B+)
ARAGVI tap no impact on credit profile
- S&P and Moody’s have confirmed no rating action associated to the tap, as the proceeds will be used to pay down working capital bank facilities and fund USD10mn of capex.
- Trans-oil Group, the agro-industrial conglomerate, via its financing SPV Aragvi is tapping its existing USD500mn 11.125% Nov29 bond, which was issued last year at 11.375% yield and is around 10% today.
- In FY23/24 the group sold 5.3mn tonnes of agricultural commodities. Grain, seeds, veg oil, oil meal and packaged veg oil accounted 98% of group rev in FY23/24. EBITDA margins are thin around 9% in FY23/24. In FY 2025 and 2026 S&P est EBITDA of USD200-230mn. Co. calculated leverage is 1.5x, but rating agency adjusted leverage is closer to 3x. FFO to net debt is expected to range between 18-20%.
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