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Croatia's Fortenova Hopes Bond Issue Marks Start Of New Era

By Steve Wynne-Jones
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Croatia's Fortenova Hopes Bond Issue Marks Start Of New Era

Croatian food company Fortenova Grupa, formerly known as Agrokor, has issued €1.157 billion in four-year bonds to refinance a loan it took out in 2017 to avoid bankruptcy.

Agrokor was put into state administration in April 2017 and rescued after a settlement deal between creditors a year ago. The new owners changed the company's name to Fortenova last April.

'Completely Refinanced'

"By this arrangement Fortenova has completely refinanced the loan and secured mid-term stability and long-term sustainability. Now we enter a new business phase with a focus on boosting profitability," Fortenova's Chief Executive Officer Fabris Perusko said in a statement after the bond issue.

The bond has an interest rate of 7.3% plus Euribor, the company said.

Agrokor's expansion drive fuelled by high and expensive debt took the Balkan region's biggest company by sales to the brink of bankruptcy.

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The loan it took out in 2017 was extended last year and was due to mature this month. It has had a progressive interest rate of up to 14%.

The new bond issue was arranged by U.S. fund HPS Investment Partners and Russian bank VTB.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

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