Investments in Agroton securities at geopolitical risks – opinion
Investments in debt obligation of Agroton* carry significant geopolitical risk, - according to Alexander Paraschiy, the head of the analytical department of the investment company Concorde Capital, in his comment of the buyout by the holding of its own debt obligations to the sum of $ 22.1 mln
Despite the fact that this purchase looks promising for bondholders, in his opinion, such a step does not resolve the issue with very weak corporate governance of the company.
"We also should note that investing in Agroton securities still carry significant geopolitical risk, as the region of the company, Lugansk region, now sees a tension," - he added.
The company sold its eurobonds to the sum of $ 50 mln in July 2011, and since July 2013, Agroton conducted a series of debt reorganization, extending the repayment period of eurobonds from 2014 till 2019 and reducing the coupon rate to 6% from the original 12,5%.
*Agroton Public Ltd is listed on the Warsaw Stock Exchange
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