Ekosem-Agrar AG, German holding company of the Ekoniva Group which focuses on milk production in Russia, has decided to propose to the bondholders to extend the bearer bonds 2012/2022 (ISIN: DE000A1R0RZ5) and the bearer bonds 2019/2024 (ISIN: DE000A2YNR08) by five years each and to reduce the interest rate from 8.5% and 7.5% p.a. respectively to 2.5% p.a. in each case. (with retroactive effect from the last interest payment date in each case). The Ekosem-Agrar Bond 2012/2022 will then be due for repayment on 7 December 2027 and the Ekosem-Agrar Bond 2019/2024 on 1 August 2029. In addition, the bondholders will be asked for a qualified subordination for the interest payments in order to avoid risks from the dynamically changing regulatory situation, but also from economic developments that are difficult to plan. In addition, the company is asking the bondholders to waive the repayment option in the event of a sale of the shares in the Russian operating companies (change of control). This is important because in the event of an imminent expropriation, a financing ban or other possible restrictions on foreign companies, the company could only avoid a total loss of assets by selling the shares to a company based in Russia. Such measures have already been discussed and enacted in Russia for some specific cases. The Company considers it necessary to be prepared for this case in the interest of the bondholders.
