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PhosAgro prices US$500 million Eurobond issue

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World Fertilizer,

PhosAgro has successfully priced a US$500 million five-year Eurobond issue with a coupon of 3.05%. The company priced the issue on 15 January and settlement is expected to take place on 23 January.

PhosAgro CEO, Andrey Guryev, said: "Since our debut Eurobond issue in 2013, the company has transformed its business, strengthening its positions as one of the lowest-cost and most sustainable vertically integrated fertilizer producers in the world. PhosAgro recently completed a large-scale investment cycle, strengthening its position in both Russian and international markets, creating a solid base for long-term sustainable growth.

"I am pleased to announce that PhosAgro has taken another successful step in public capital markets, setting a new record low coupon among Russian issuers for US$-denominated bonds. Oversubscription was higher than 4x at peak demand, with participation by a broad range of investors from all over the world, indicating there is strong demand for PhosAgro's corporate debt and that the company is viewed as reliable."

Xavier Rolet, Chairman of PhosAgro's Board of Directors and former CEO of the London Stock Exchange from 2009 to 2017, underscored that "further proof of the transaction's success is the fact that these bonds include a reduced set of covenants, which indicates investors' high level of confidence in PhosAgro, in its capacity as a first-class corporate borrower and in its financial stability. The company, which listed on the LSE almost nine years ago, fully complies with the exchange's motto, 'dictum meum pactum'."

Demand for the bonds at record low price guidance reached US$2 billion with participation from a broad range of institutional investors, banks, asset management companies and funds from Russia, Europe, the United States and Asia. Upon completion of the transaction, the funds will be used to optimise PhosAgro's credit portfolio while maintaining net debt/EBITDA at a comfortable level.

The credit ratings assigned to PhosAgro's latest Eurobond issue are BBB- from Standard & Poor's, Baa3 from Moody's and BBB- (EXP) from Fitch Ratings, which corresponds to the Company's corporate credit ratings.

Citi, Gazprombank, J. P. Morgan, BofA Securities, Sberbank CIB, VTB Capital and Renaissance Capital acted as joint bookrunners for the transaction.

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