MHP, Ukraine’s largest poultry producer, on Wednesday completed a €415 million ($485.6 million) bond sale—the first by a Ukrainian company since Russia’s full-scale invasion began in 2022. International investors bid €2.1 billion ($2.46 billion) for the three-year bonds, more than five times what was on offer.
“I think the short answer is that MHP is a rarity in the corporate landscape.”
The overwhelming demand pushed down the interest rate MHP must pay, from initial discussions above 11% to a final yield of 10.5%. For a country approaching the fourth year of war, the oversubscription signals that some segments of Ukraine’s private sector can still tap global capital markets—and on increasingly favorable terms.
“I think the short answer is that MHP is a rarity in the corporate landscape,” Cem Karacadag, head of Barings’ global sovereign debt and currencies group, told Luxembourg Times.
Why investors trust a company at war
MHP isn’t a typical Ukrainian company. The agricultural conglomerate expanded beyond Ukraine last year by acquiring Spanish poultry and pork producer Grupo UVESA, and the new bond is guaranteed by both its Ukrainian and European businesses. If the war takes a turn for the worse, investors still have a claim on assets in Spain.
“MHP retains the support of its international and local lenders.”
MHP cultivates 360,000 hectares across 12 Ukrainian regions, exports to more than 80 countries, and posted $2.64 billion in revenue through September 2025—up 16% year-on-year—with net profit rising to $215 million. S&P Global Ratings and Fitch Ratings both assigned “positive” outlooks to MHP’s credit ratings earlier this month.
“MHP retains the support of its international and local lenders as it continues to service its financial obligations in full and on time,” S&P stated, while warning that long-term refinancing risks “remain high.”
The company will use the proceeds to buy back bonds maturing in April.
Not everyone can follow
The same week MHP celebrated its successful bond sale, Ukrainian Railways—the state-owned carrier that evacuated millions of civilians in the war’s early months—suspended coupon payments on its dollar bonds, citing the financial impact of four years of invasion.
The company faces a $700 million principal payment in July and has warned investors it may be unable to repay the full amount. It has hired Rothschild & Co. to pursue debt restructuring.
The contrast shows which Ukrainian companies can access markets—and which cannot. MHP’s Spanish operations provide bondholders a guarantee backed by EU-based assets. Ukrainian Railways has no such cushion.
Local Ukrainian businesses, both state-backed and private, have around €2.8 billion ($3.28 billion) in bonds coming due in 2026. Most won’t find willing buyers.
Trending Now
Economic backdrop
Ukraine’s financial situation has stabilized considerably since 2022, though challenges remain. The National Bank of Ukraine reported that international reserves grew by more than 30% in 2025 to $57.3 billion—the highest level in the country’s history—providing the monetary stability that enables corporate refinancing.
“This is our safety margin for uninterrupted financing of the country’s defense and reconstruction needs,” NBU Governor Andriy Pyshnyy stated.
The NBU has held its key rate at 15.5% throughout 2025—a tighter monetary policy than Russia’s despite being the invaded country—as it builds the institutional credibility needed for EU membership.
The timing of MHP’s bond sale aligns with broader moves to reopen Ukraine’s access to external financing. On 14 January, the National Bank of Ukraine eased currency restrictions to help domestic companies restructure foreign loans—changes the central bank said are “important for attracting new resources into Ukraine’s economy.”
At the same time, the World Bank projects Ukraine’s public debt will reach 111% of GDP in 2026—the peak year, after which debt is expected to decline.
The bond market door has opened—but only for companies that can show investors a way out if the war doesn’t end.
