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Grâu

În data de 22 iulie, Ucraina și Rusia, sub egida ONU și cu intermedierea Turciei, au semnat la Istanbul ”Inițiativa pentru transportarea în condiții de siguranță a cerealelor și alimentelor din porturile ucrainene”, cu scopul de a debloca parțial porturile maritime ucrainene Odesa, Ciornomorsk și Iujne, pentru exportul de cereale și fertilizanți. Prima navă în cadrul acestui acord, încărcată cu 26000 tone de porumb ucrainean, a părăsit portul Odesa la 1 august, traversând ”coridorul cerealelor”.

 

Însăși posibilitatea de a exporta pe cale maritimă din porturile ucrainene a generat o scădere a prețurilor atât la Bursa de Valori din Chicago, cât și pe piața spot. În ziua semnării acordului, cotațiile grâului au scăzut cu 8,5% și cele ale porumbului cu 3,5%. Ulterior, însă, scăderea prețurilor s-a atenuat. Per total, în luna iulie, prețurile mondiale la grâu au scăzut cu 14,5%.

 

Scăderea prețurilor a fost influențată și de începerea sezonului de recoltare în emisfera nordică și, respectiv, creșterea ofertei.

 

Totuși, prețurile internaționale la grâu sunt în continuare cu 24,8% mai mari comparativ cu ​cele înregistrate în ​iulie anul trecut.

 

Menționăm că pe parcursul lunii precedente Ucraina a exportat 1,7 milioane de tone de culturi cerealiere, în creștere cu 21% față de volumul exportat în iunie (1,4 milioane de tone), dar cu 45% mai puțin față de același indicator înregistrat cu un an mai devreme (3,1 milioane de tone). Potrivit agricultorilor ucraineni, problema rentabilității a trecut pe plan secund, prioritatea de bază fiind acum de a scăpa de produsele rămase în stoc și astfel de a face loc pentru noua recoltă.

 

Porumb

Prețurile internaționale la cereale furajere continuă să înregistreze tendințe descendente pentru a patra lună consecutiv, fiind în scădere cu 11,2% față de prețurile din iunie, dar oricum rămân a fi cu 12,1% mai mari față de anul trecut.

 

Ca și în cazul grâului, motivul de bază pentru descreșterea prețurilor mondiale la porumb cu 10,7% a fost semnarea acordului de deblocare a porturilor ucrainene.

 

Creșterea sezonieră a ofertei în Argentina și Brazilia, unde recolta depășește cifrele de anul trecut, a contribuit și ea la scăderea prețurilor. Scăderea cotațiilor la grâu și porumb a provocat și o scădere a prețurilor la sorg și orz cu 12,8% și 12,6% respectiv.

 

Semințe de floarea soarelui și ulei vegetal

Indicele FAO al prețului uleiului vegetal a scăzut cu 19,2% în iulie până la cel mai mic nivel din ultimele 10 luni. O scădere atât de semnificativă a fost cauzată de reducerea prețurilor mondiale la uleiurile de palmier, soia, rapiță și floarea soarelui. În iulie, prețurile internaționale la uleiul de palmier au continuat să scadă pentru a patra lună consecutiv, în primul rând ca urmare a creșterii puternice anticipate a ofertei din Indonezia, principalul exportator de ulei de palmier pe plan mondial. În același timp, scăderea cotațiilor internaționale la uleiurile de soia și, respectiv, de rapiță a fost rezultatul perioadei lungi de cerere scăzută și a recoltei bogate anticipate. Cât despre uleiul de floarea-soarelui, în pofida incertitudinii continue privind logistica în regiunea Mării Negre, prețurile internaționale au înregistrat o descreștere semnificativă pe fundalul nivelului redus al cererii de import în întreaga lume. Reducerea cotațiilor mondiale la uleiurile vegetale a fost influențată și de reducerea prețurilor la țiței.

 

În același timp, potrivit agențiilor analitice românești, scăderea semnificativă a recoltei de floarea-soarelui în 2022 va contribui la creșterea prețurilor la această cultură și respectiv la uleiul de floarea soarelui. În prezent, o tonă de floarea soarelui pe piața românească costă 550 de dolari (Paritate: EXW siloz).

 

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Что происходит на зерновом и масличноим рынках после разблокировки украинского экспорта? Цены в регионе

Пшеница

22 июля Украина и Россия при содействии Турции и ООН подписали в Стамбуле «Инициативу по безопасной транспортировке зерна и продуктов питания из украинских портов», которая призвана частично разблокировать украинские морские порты Одесса, Черноморск и «Южный» для экспорта зерна и удобрений. Первое судно по этой программе, следующее в порт Триполи в Ливане с 26 тыс. тонн украинской кукурузы, прошло «зерновым коридором» из Одесского порта 1 августа.

Сама возможность экспорта морем привела к снижению цен как на Чикагской бирже, так и на наличном рынке. В день подписания соглашения котировки пшеницы снизились на 8,5%, кукурузы – на 3,5%. Однако затем цены частично отыграли падение. В целом же в июле мировые цены на пшеницу упали на 14,5%.

Кроме того, на снижение цен повлияло начало уборки урожая в Северном полушарии и, как следствие, рост предложения.

В то же время международные цены на пшеницу все еще на 24,8% выше показателей июля прошлого года.

Отметим, что из Украины в прошлом месяце на внешние рынки было отгружено 1,7 млн тонн зерновых культур, что на 21% превышает экспортированный объем в июне (1,4 млн тонн), но на 45% уступает аналогичному показателю годом ранее (3,1 млн тонн). Украинские фермеры говорят, что вопрос прибыльности сейчас отошел на второй план. Главное – избавиться от запасов и освободить место под новый урожай.

Кукуруза

Международные цены на фуражные зерновые также продолжают демонстрировать тенденцию к снижению вот уже четвертый месяц подряд: они опустились на 11,2% по сравнению с июнем, но остаются на 12,1% выше уровня прошлого года.

Как и в случае с пшеницей основной причиной падения мировых цен на кукурузу на 10,7% стало заключение соглашения о разблокировании украинских портов.

Вклад в снижение цен также внесло сезонное увеличение предложения в Аргентине и Бразилии, где уборочная идет опережающими темпами по сравнению с прошлогодними показателями. Сокращение котировок пшеницы и кукурузы также спровоцировало падение цен на сорго и ячмень на 12,8% и 12,6% соответственно.

Подсолнечник и растительное масло

Среднее значение индекса цен на растительные масла ФАО в июле опустилось на 19,2% до минимального значения за последние 10 месяцев. Столь резкое падение было вызвано снижением мировых цен на пальмовое, соевое, рапсовое и подсолнечное масла. В июле международные цены на пальмовое масло продолжили снижаться четвертый месяц подряд, главным образом ввиду ожидаемого значительного роста предложения в Индонезии – ведущем мировом экспортере пальмового масла. В то же время снижение международных котировок соевого и рапсового масел было обусловлено, соответственно, длительным периодом вялого спроса и ожидающимся богатым урожаем. Что касается подсолнечного масла, то, несмотря на сохраняющуюся неопределенность с логистикой в Черноморском регионе, международные цены заметно снизились на фоне сокращения импортного спроса в мире в целом. Снижению мировых котировок растительных масел также способствовало сокращение цен на сырую нефть.

В то же время, по информации румынских аналитических агентств, значительное снижение урожая подсолнечника в 2022 году будет способствовать росту цен на него, а значит и на повышение цен на подсолнечное масло. Сейчас на рынке Румынии тонна подсолнечника стоит $500 

 

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Grain and vegetable oil markets after the unlocking of Ukrainian ports. Prices in the region.

 

Wheat
On July 22, Ukraine and Russia signed in Istanbul The Initiative on the Safe Transportation of Grain and Foodstuffs from Ukrainian Ports, under the aegis of the UN and Türkiye assistance, to partially unblock the Ukrainian seaports of Odessa, Chornomorsk and Yuzhne for exports of grains and fertilizers. The first ship loaded with 26,000 tons of Ukrainian corn, under this deal, left the port of Odessa on August 1st and passed through the "grain corridor".

The very possibility of exports by sea led to a decrease in prices on both the Chicago Board of Trade and on the spot markets. On the day the deal was signed, wheat price quotations dropped by 8.5% and corn price quotations by 3.5%. The decrease in prices then slowed down. Overall, world wheat prices decreased by 14.5% in July.

The start of harvest season in the Northern Hemisphere and the resulting growth in supply also influenced the price decrease.

However, the global wheat prices are still 24.8% higher than in July last year.

Over the past month, 1.7 million tons of grain crops were shipped from Ukraine for the foreign markets, which is 21% more than the volume exported in June (1.4 million tons), but 45% less than the same indicator in the previous year (3.1 million tons). According to Ukrainian farmers, profitability is not a priority topic now, what matters the most is to get rid of the existing stocks and make room for the newly harvested crops.

 

 

Corn

International prices for feed grains declined for the fourth consecutive month, down 11.2 percent, but remained 12.1 percent above their values a year ago.

The same as with wheat, the main reason for the 10.7 per cent fall in the world corn prices was the deal signed to unblock the Ukrainian ports.

Increased seasonal availability in Argentina and Brazil, where corn harvests are above the last year figures, also helped to ease the pressure on prices. Spillover from the drop in wheat and corn price quotations also pressured sorghum and barley prices downwards, respectively, by 12.8 percent and 12.6 percent.

Sunflower seeds and vegetable oils

The FAO Vegetable Oil Price Index decreased by 19.2 percent in July from June, marking a 10-month low. This sharp drop was caused by a decline in world prices for palm, soybean, rapeseed and sunflower oils. In July, international palm oil price quotations continued to decline for the fourth consecutive month, mainly due to prospects of Indonesian ample export availability - the world's leading palm oil exporter. At the same time, the decline in international prices for soybean and rapeseed oils was due to a protracted low demand, as well as expectations of ample new crop supplies. Sunflower oil prices also dropped amid subdued global import demand, even though logistical uncertainties continued in the Black Sea region. Lower crude oil prices also pressured vegetable oil values down.

At the same time, according to Romanian analytical agencies, a significant decline in the sunflower harvest in 2022 will result in a seeds price rise, and hence an increase in sunflower oil prices. A ton of sunflower seeds (SFS) on the Romanian market is $550 now (Parity: EXW inland silo).

Fitch Ratings has revised Aragvi Holding International Limited’s (Trans-Oil) Outlook to Positive from Stable. Issuer’s default ratings (IDRs) have been affirmed at 'B'. This is considered to be an impressive achievement given the current regional and geopolitical environment the Group is forced to operate in.

 

The Positive Outlook is driven by Trans-Oil’s increased scale and improved business diversification following the expansion of its Origination and Marketing segment into new countries such as Argentina and Germany with foreign origination reaching 86% of sales during FY21 (year end to June 2021).

 

The improved scale and business diversification are also underpinned by the acquisition of Serbian assets. This, together with a conservative capital structure and risk management, points to a strengthening credit profile.

*Romanian and Russian text below

Since Trans-Oil Group has kept its promise not to raise the price of refined sunflower oil sold on the domestic market during the 60-day period commencing March 1, 2022 and despite the losses the Group continues to incur in the sale of sunflower oil on the domestic market (as reported by the Competition Council as well), the shareholders of Transoil Group took the decision to keep the current producer price of 29.1 lei (VAT included) for a bottle of "FLORIS" sunflower oil, sold on the domestic market of the Republic of Moldova, a price which has been valid since declaration by the Parliament of the Republic of Moldova of the state of emergency.
This decision comes as a response to the huge impact of rising prices on staple goods and underlines the social orientation of the Group's business in the Republic of Moldova. The company will continue to apply the price capping throughout the state of emergency, declared and extended by the Parliament of the Republic of Moldova.


We urge the retail chains and other distributors to show solidarity with the efforts of Trans-Oil Group and those of the Government of the Republic of Moldova and to apply a minimum profit margin on the social product "FLORIS", which is of a major economic importance for the society.


Earlier, we welcomed the decision of the Commission for Exceptional Situations (CSE) to add the refined vegetable oil to the list of products of social importance and to apply a mark-up ceiling. We believe that this decision will result in a lower shelf price of sunflower oil and will prevent the distributors of FLORIS sunflower oil from engaging in abusive practices.


At the same time, we ask CES to immediately repeal the decision no. 21 of May 18, 2022, according to which VAT amounts for goods and services purchased and used for the export of sunflower oil are excluded from deductible VAT.
The right to VAT deduction and reimbursement in export transactions is a fundamental principle of the VAT system, enshrined in the Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (with a separate title dedicated to it), which the Republic of Moldova has undertaken to implement according to the Association Agreement.


Deprivation of this right entails double payment of VAT both in the exporting country and in the country where the goods are imported.


This is an unprecedented situation and a flagrant violation of a fundamental economic right, targeting exclusively a domestic producer having shareholders in the United States of America, including Oaktree Capital Management LP - one of the largest asset managers worldwide.


The decision not to reimburse VAT is a vicious practice of nationalizing the profits of a private company, which could be interpreted as a direct and unjustified threat against the conduct of business in a liberalized market economy;
We informed the development partners of the Republic of Moldova about the negative impact this decision has on the Group's operations, but also on the investment climate and the external perception of the Government's efforts for structural reforms.


We call on the authorities to engage in an open dialogue aimed at reaching a compromise and strengthening the efforts of all parties to contain the rising prices.

 

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In conditiile in care Grupul Trans-Oil a respectat promisiunea de a nu creste prețul la uleiul rafinat pentru piața interna pentru perioada de 60 zile începând cu data de 1 martie 2022 și in pofida faptului ca Grupul continua sa înregistreze pierderi din vanzarea uleiului pe piata interna (fapt semnalat și Consiliului Concurentei), acționarii Grupului Transoil au luat decizia de a mentine pretul actual al producatorului de 29.1 lei (TVA inclus) pentru o sticla de ulei "FLORIS", pe piata interna a Republicii Moldova, valabil de la data instituirii situatiei exceptionale de catre Parlamentul Republicii pana in prezent.
 
Aceasta decizie vine ca o reactie la magnitudinea impactului cresterii preturilor la produsele social importante si accentueaza orientarea sociala a afacerii Grupului in Republica Moldova. Pretul va fi in continuare plafonat de catre Grupul Trans-Oil pe durata starii de urgenta, instituita si prelungita de Parlamantul Republicii Moldova.
 
Ne adresam lanturilor de retail si altor distribuitori sa fie solidari fata de eforturile Grupului Trans-Oil si celor ale Guvernului Republicii Moldova si sa aplice o marja de profit minima pe produsul social "FLORIS" de importanta economica majora pentru societate.
 
Anterior, am salutat decizia Comisiei pentru Situatii Exceptionale (CSE) privind introducerea uleiului dezodorizat pe lista produselor social importante si plafonarea adaosului comercial. Consideram, ca aceasta decizie va duce la scaderea pretului uleiului la raft si va preveni practicile abuzive in retelele de distribuire a uleiului "FLORIS".
 
Totodata, solicitam CSE abrogarea imediata a dispozitiei nr. 21 din 18 mai 2022, care prevede, printre altele, excluderea de la deducere a sumelor TVA, aferente marfurilor, serviciilor procurate, folosite pentru efectuarea exportului uleiului de floarea soarelui.
 
Dreptul la deducere și, respectiv, de rambursare a TVA pentru operațiunile de export reprezintă un principiu fundamental de funcționare a TVA ce se regăsește în Directiva 2006/112/CE a Consiliului Europei din 28 noiembrie 2006 privind sistemul comun al taxei pe valoarea adăugată (fiindu-i dedicat un titlu separat), pe care Republica Moldova s-a angajat să o implementeze prin Acordul de Asociere.
 
Privarea de acest drept impune la achitarea dublă a TVA atât în țara exportatoare, cât și în țara în care sunt importate mărfurile respective.
 
Catalogam aceasta decizie fara precedent ca o incalcare flagranta a unui drept economic fundamental, tintita exclusiv asupra unui producator autohton cu actionari din Statele Unite ale Americii, printre care si Oaktree Capital Management LP – unul dintre cei mai mari administratori de active la nivel mondial.
 
Decizia de nerambursare a TVA reprezinta o practica vicioasa de nationalizare a profiturilor unei afaceri private, ce ar putea fi interpretata ca o amenintare directa și nejustificata asupra conduitei de afaceri intr-o economie de piața liberalizata;
 
Am adus la cunostinta partenerilor de dezvoltare ai Republicii Moldova impactul negativ al acestei decizii asupra operatiunilor Grupului, dar si asupra climatului investitional si perceptiei din exterior a eforturilor Guvernului pentru reforme structurale.
 
Chemam autoritatile la dialog deschis, pentru a gasi un compromis pentru situatia creata si a consolida eforturile tuturor partilor pentru a stapani valul cresterii preturilor.
 
 
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Учитывая, что Группа Trans-Oil сдержала свое обещание не повышать цены на рафинированное масло на внутреннем рынке в течение 60 дней, начиная с 1 марта 2022 года, и несмотря на то, что Группа продолжает регистрировать убытки с продажи масла на внутреннем рынке (факт, доведенный до сведения Совета по Конкуренции), акционеры Группы Trans-Oil решили сохранить текущую цену производителя в 29,1 лея (включая НДС) за бутылку масла «FLORIS» на внутреннем рынке Республики Молдова, которая установлена со дня введения чрезвычайного положения Парламентом Республики по настоящее время.
 
Это решение принято в ответ на масштабы воздействия роста цен на социально значимую продукцию и подчеркивает социальную направленность бизнеса Группы в Республике Молдова. Цена по-прежнему будет ограничиваться Группой Trans-Oil на время чрезвычайного положения, установленного и продленного Парламентом Республики Молдова.
 
Мы обращаемся к розничным сетям и другим дистрибьюторам с просьбой поддержать усилия Группы Trans-Oil и Правительства Республики Молдова и установить минимальную долю прибыли на социальный продукт «FLORIS», имеющий большое экономическое значение для общества.
 
Ранее мы приветствовали решение Комиссии по Чрезвычайным Ситуациям (КЧС) включить дезодорированное масло в перечень социально значимых товаров и ограничить торговую надбавку. Мы считаем, что это решение снизит цену на масло на прилавках и предотвратит злоупотребления в сетях сбыта масла «FLORIS».
 
В то же время мы просим КЧС немедленно отменить положение № 21 от 18 мая 2022, которым предусмотрено, в том числе, исключение из вычета сумм НДС, относящихся к приобретенным товарам, услугам, используемым для экспорта подсолнечного масла.
 
Право на вычет и, соответственно, возмещение НДС по экспортным операциям является основополагающим принципом действия НДС, который закреплен в Директиве Совета Европы 2006/112/СЕ от 28 ноября 2006 г. об общей системе налога на добавленную стоимость (ей был посвящен отдельный заголовок), который Республика Молдова обязалась реализовать посредством Соглашения об Ассоциации.
 
Лишение этого права требует двойной уплаты НДС – как в стране-экспортере, так и в стране, куда ввозится товар.
 
Мы квалифицируем это решение как беспрецедентное, как грубое нарушение основного экономического права, направленное исключительно против отечественного производителя с акционерами из Соединенных Штатов Америки, среди которых Oaktree Capital Management LP — один из крупнейших управляющих активами в мире.
 
Решение не возмещать НДС является порочной практикой национализации прибыли частного бизнеса, что может быть истолковано как прямая и необоснованная угроза ведению бизнеса в условиях либерализованной рыночной экономики. 
 
Мы проинформировали партнеров по развитию Республики Молдова о негативном влиянии этого решения на деятельность Группы, а также на инвестиционный климат и внешнее восприятие усилий Правительства по проведению структурных реформ.
 
Призываем власти к открытому диалогу, поиску компромисса в создавшейся ситуации и активизации усилий всех сторон по сдерживанию волны роста цен.

In light of the current geopolitical turmoil, Trans-oil wishes to reassure its customers, employees, creditors and stakeholders on the Company’s strong financial and operational footing and medium-term outlook. Trans-oil continues to benefits from its decade-long investments in governance, human capital, infrastructure and risk management, and is well positioned for future growth.

Founder and CEO Vaja Jhashi said “ At present our processing operations are unaffected by current events and our utilization rates remain at historic highs. Our immediate priorities are to mitigate risk, engage with our suppliers and customers, allocate our capital with forbearance, and where relevant, to secure alternative export routes for certain products. We are confident in our ability to carry on operating smoothly and profitably. Our short and medium term funding needs are well covered, with ready access to USD and EUR liquidity that is diversified between market and banks. c.98% of our revenues and EBITDA are in hard currency”.

Trans-oil has a strong track record of sustainable growth and rising profitability, with 43.6% revenue CAGR and 31.4% EBITDA CAGR in the past three fiscal year. In the last fiscal year, volumes grew by 27%, while revenue expanded by 67% and EBITDA by 43%. Financial leverage as measured by net debt / Adj. EBITDA is low at 1.7x. Following the consolidation of Victoria Oil, Trans-oil’s competitive positioning has improved further, making it one of the largest Crushing companies in the CEE region. In July 2021, the Company agreed to invest further in Serbia, acquiring two port terminals, as well as storage capacity of 400, 000 Mt Its unique in-land and waterway infrastructure along the Danube provides Trans-oil with a clear competitive advantage. Origination, products and distribution are diversified, and margins are best-in-class. Additionally, volumes continue to grow strongly in newer markets such Turkey and the Middle East, underscoring the Company’s diversification efforts and continuous drive for new growth opportunities. In sum, Trans-oil is anchored by strong fundamentals, well positioned to withstand the current volatility, and ready to capture future growth.

The Company’s medium term outlook is also positive: Trans-oil is an important originator of key commodities that are experiencing supply-side disruptions, and will seek to responsibly leverage its competitive position as one of the largest vertically integrated agro-industrial businesses in the CEE region to continue to drive value for our stakeholders in the years to come.

The Company looks forward to updating its investors, creditors and stakeholders more fully during its upcoming earnings release scheduled for 25 March 2022.

TransOil Group is proud to announce it’s largest ever shipment of 100’000-tons grain vessel, going from Novorossiysk, Russian Federation to customers in Middle East. It is also the first and largest ever shipment from any of the Russian grain terminals. It became true due to a recently commissioned deep-water birth 40A, operated by KSK Grain Terminal, part of DeloPorts, a stevedoring asset of Delo Group.

Vaja Jhashi, the CEO of TransOil, noted on the subject: It’s a record grain shipment of such size, not just in TransOil’s history, but, so far, in Russian ports as well. It’s a great achievement for TransOil and all parties involved. This shipment marks the reliability and high level of cost efficiency delivered through TransOil supply chain.

 

On 10th September 2021, Trans-Oil Group (‘the Group”) successfully priced US$50m tap issuance of the original US$450m Eurobond due 2026. The transaction brings the outstanding Eurobond to a total benchmark size of US$500m following the US$400m new Eurobond issue in April 2021 and first US$50m tap issue in June 2021, supporting the investor demand and enhancing liquidity.

The new tap issuance was launched on the back of strong secondary market trading and generated outstanding investor demand with a total order book reaching US$ 300m during the bookbuilding reflecting sixfold oversubscription. The high quality demand came from the institutional investors from the US (offshore), UK and Continental Europe representing approximately 50, 25 and 25 per cent of the book. As the result, the tap was priced at price of 104.125 reflecting final yield of 7.33% (YTW) – well inside the original issue yield.

The transaction further improves the Group’s capital structure and maturity profile replacing inflexible short-term trade finance lines with top-line driving long-term debt. S&P and Fitch reaffirmed credit ratings of the Group and the Eurobond following the proposed tap issue.

Citi, ING and Renaissance Capital acted as Joint Lead Managers and Joint Bookrunners in connection of the tap issuance.

“The exceptional international investor demand we have seen for our new tap issue is an additional testimony of our consistently outstanding performance, strengthening business model and solid credit profile. We are grateful for the support of our long-standing investors and welcome new accounts, which will altogether benefit from solid liquidity of $500m benchmark total issue size. With the new issue we continue to improve our capital structure and extend the debt maturity profile contributing to sustainable growth and development of leading regional agri-industrial franchise” - commented Vaja Jhashi, CEO and Founder of Trans-Oil Group.

We are proud to announce that we are shipping 75,000 tons of barley from Constanta to Persian Gulf .
This is the largest shipment so far from Constanta this trading season.

On 2nd of July TransOil placed successfully another US$50m tap of the recent TransOil’s US$400m 5NC3 high yield bond. The tap came on the back of strong secondary market performance of the initial US$400m 8.45% 5-year offering of TransOil placed last month, which saw an orderbook above US$1.5bn.

It was priced at a yield of 7.45% / price of 104.033 with the orderbook reaching an unprecedented 10x oversubscription (ca USD500m) supported by a very high-quality long only accounts & banks from the US, UK and EU.

 

The offering represents another landmark achievement for Trans-Oil and the CEE region this year, as:

 

One of the highest oversubscriptions ever for a high-yield tap - by over 10x

This offering continued to reprice Trans-Oil’s credit risk, with tap yield 1% inside the original yield

It replaces more expensive & inflexible trade finance lines with top line driving long-term debt

Retained important DFIs as investors

 

The record-breaking book oversubscription signals of the continued strong demand towards high-yielding issuers and CEEMEA region despite inflation concerns.

   On 14th of April, Trans-Oil Group (“the Group”) has successfully returned to the international debt capital markets with a new US$ 400m Eurobond issue due 2026. The transaction is a landmark Eurobond placement in the CEE region in 2021 and the largest offering out of Moldova as the Group continues to be the country’s only issuer post the debut deal in 2019.

The new Eurobond issue generated outstanding demand from international institutional investors with a total order book exceeding US$ 1.5bn during the bookbuilding. Broad investor demand diversification was evidenced by active participation of international asset managers and funds across geographies.  Investors from Continental Europe, the US, Switzerland and the UK received 27, 26, 25 and 19 per cent allocation in the final book respectively, with the rest coming out of MENA and Asia. International development financial institutions and long-standing partners of the Group, Black Sea Trade and Development Bank (“BSTDB”) and International Investment Bank (“IIB), have anchored the deal, confirming a total US$ 50m commitment to participate in the new issue at the time of the transaction announcement.

On the back of strong investor demand, the transaction was priced at a yield of 8.45%, representing a significant 365 basis points reduction compared to the debut US$ 300m Eurobond issue in 2019. The proceeds from the issue are to be used to finance an early redemption of the outstanding US$ 300m 12% Notes due 2024 via an any-and-all tender offer and exit consent exercise with additional funds directed for general corporate purposes, including financing of the Group's working capital.

The issue was assigned an expected 'B' rating by Fitch Ratings and a 'B-' rating by S&P Global Ratings.

“The new transaction sets an important milestone in Trans-Oil capital markets history after the debut transaction in 2019. Since that time, the Group has transformed into a larger and more diversified CEE agro-industrial franchise while our revenues and EBITDA have almost doubled. We are grateful that the broad international investor universe has recognized our consistently outstanding performance and strengthened business model. The new issue has attracted robust demand in excess of US$ 1.5bn stemming from our long-standing investors as well as new accounts out of the US, Europe, Asia and MENA, and we achieved substantial yield reduction. With this exceptional investor support we are confidently looking forward and will continue to develop our leading agri-industrial business within the Danube region” - commented Vaja Jhashi, CEO and Founder of Trans-Oil Group

“The overwhelming investor demand for the new Eurobond issue reflects the Group’s resilient business model and proven growth and profitability track record. Trans-Oil has further strengthened its funding profile and proven its access to capital markets contributing to the long-term sustainable development of the Group.” - commented Jim Van Steenkiste, Co-Portfolio Manager, European Principal Group, Oaktree Capital Management, L.P.

 

 Climatic risks are on the top of the EU environmental investment priorities. Given high rate of deforestation, temperature rise to 1.5 degree Celsius by 2050 is a realistic scenario. It will inevitably affect most industries. Adaptation to climate change is an urgent need for many of them. Especially for companies in the agricultural sector.

 

Droughts, floods and sharp temperature fluctuations may cause agricultural losses, and as a result financial instability of a company. These negative impacts are often exacerbated by chronic problems in the agricultural sector, that have accumulated over decades.

 

For this reason, agribusiness investors are paying increasing attention to understanding risks caused by climate change.

 

At the webinar you will learn about:

impact of climate change on agriculture in Eastern Europe and Central Asia;

criteria used by investors to assess resilience to climate risks;

real examples of agribusiness adaptation to climate change risks in Ukraine and Moldova;

how investors support climate adaptation of their clients.

 

Target audience: top management, E&S specialists, investors, representatives of the public sector and government agencies, consultants, etc.

Speakers:

Natalia Alekseeva, Team Leader for National Climate Change Action, FAO (Italy);

Fiodor Rafiev, Director of Legal Department, Corporate Secretary, Trans Oil Group (Moldova);

Liubov Bohachevska-Jensen, Director of Development and Communications, GoodValleу (Ukraine).

 

Moderator: Tatiana Gerling, Senior Environmental and Social Specialist, FMO.

 

When: 8 December 2020

 

Where: ZOOM platform

 

FaceBook: https://www.facebook.com/transoilgroupmd

 

Registration link: https://bit.ly/3nN7Ufj

 

We look forward to welcoming you at the webinar!

 

Today, Trans-Oil Group was honored to meet Mr Igor Dodon on construction site in International Freeport Giurgiulesti. Mr president expressed his high appreciations for the work that was done and thanked for efforts and investment that Trans-Oil Group is engaging to bring new technology to Moldova. Trans-Oil Group is building new Sunflower Processing plant that is planned to start up in March 2021

 

 

 

        Trans-Oil Group (Aragvi Holding International Ltd.), the largest agro-industrial holding in Moldova, has released today its reviewed interim consolidated IFRS financial statements for the six-month period ended 31 December 2019.

H1 FY2020 Financial highlights:

  • Consolidated revenues for H1 FY2020 recorded USD 464 million, an increase of 64% y-o-y from USD 282 million for H1 FY2019 as a result of increased grains and oil seeds origination (59% increase in Origination & Marketing segment in H1 FY2020 vs H1 FY2019) and crushing segment (179,000 tons vs 88,000 tons of sunflower seeds crushed in H1 FY2019). This is due to increasing crop production in Moldova, increased utilization capacity of the crushing facilities, rebound of vegetable oils market, trading/crushing operations in Romania and Ukraine, improved financing program (e.g. PXF usage of USD 106 million and USD 300 million Eurobond issue) and strong international marketing program.
  • EBITDA for H1 FY2020 amounted to USD 57.7 million, rising by 47% y-o-y from USD 39.2 million for H1 FY2019, on the back of record revenues and strong operating performance.
  • Strong EBITDA margin of 12.4% for H1 FY2020 as the Group continued to benefit from its market leading positions, strong pricing power and high operating efficiency.
  • Cash from operations for H1 FY2020 (before changes in working capital) amounted to USD 57.3 million,  an increase of 46% y-o-y from USD 39.1 million for H1 FY2019.
  • Net income for H1 FY2020 was USD 24.1 million.

The Group’s financial position as of 31 December 2019:

  • The Group’s adjusted net (interest bearing) debt as of 31 December 2019 stood at USD 140 million representing decrease of 14% compared to 30 June 2019 driven by larger RMI balances and lower PXF utilization.
  • Our RMIs as of 31 December 2019 were USD 325 million, an increase of 15% compared to 31 December 2018 driven by larger sales volume and purchases to finance the growing trading and crushing volumes on the back of available permanent working capital and extended drawdowns under the trade finance lines.
  • Adjusted Net (interest bearing) Debt / (LTM) EBITDA stood at 1.5x compared to 2.1x as of 30 June 2019.
  • Fixed charges coverage ratio stood at 2.0x flat compared to 30 June 2019.

Commenting on H1 FY2020 financial results, the Group CEO Vaja Jhashi said:

“We achieved record-high performance for H1 FY2020. This contributed to all-time high revenues and EBITDA of USD 464 million and USD 58 million for H1 FY2020, an increase of 64% and 47% compared to the results in previous financial year. We retain strong EBITDA margin of 12.4% on the back of our unique strategic asset base in Moldova and our wide international reach throughout Europe and MENA regions. We maintain strong financial profile efficiently utilizing our financing lines and committing to the continuous deleveraging with adjusted Net Debt / EBITDA decreased to 1.5x.

Our strong H1 FY2020 performance provides a solid ground for exceptional operational results for this year. We expect to originate and sell around 2.5 million metric tons of grains & oilseeds and crushing volumes to exceed 400k metric tons in FY 2020”

On October 28, TransOil hosted the visit of H.E. Mr. Dereck J. Hogan, U.S. Ambassador to Moldova. Mr. Ambassador visited TransOil’s port terminals and discussed about the Group’s operations and development plans with Mr. Vaja Jhashi, President & CEO of TransOil Group. Mr. Ambassador outlined the importance of agribusiness as being the driver in the modernization of the economy of the Republic of Moldova and largest contributor to its GDP. The President Vaja Jhashi appreciated the support of the U.S. Embassy and its efforts towards the development of the business society and, in particular, agriculture community of the Republic of Moldova. The parties agreed to continue talks on further cooperation and fostering a more favorable climate for foreign trade and investment.

 

Trans-Oil Group (Aragvi Holding International Ltd.), the largest agro-industrial holding in Moldova, has released today its audited consolidated IFRS financial statements for the year ended 30 June 2019. The entire document can be accessed at http://transoilcorp.com/images/transoil/reports/r30.06.19.pdf.

2019FY Financial highlights:

  • Consolidated revenues for 2019FY recorded USD 552 million, an increase of 21% y-o-y from USD 458 million for 2018FY, the strong performance was supported by bumper crop in Moldova, improved financing program and strong international marketing program. Total sales almost reached 2 million MT (increase of 25% y-o-y) with a substantial increase in sunflower seeds, wheat and other key crops (barley, soybeans and rapeseeds).
  • EBITDA for 2019FY amounted to USD 73.6 million, rising by 22% y-o-y from USD 60.3 million for 2018FY, on the back of record revenues and strong operating performance
  • Strong EBITDA margin of 13.3% for 2019FY compared 13.2% for 2018FY, as the Group continued to benefit from its market leading positions, strong pricing power and high operating efficiency
  • Cash from operations for 2019FY (before changes in working capital) amounted to USD 73.5 million,  an increase of 22% y-o-y from USD 60.1 million for 2018FY
  • Net income for 2019FY was USD 34.6 million, an increase of 30% y-o-y from USD 26.1 million for 2018FY

The Group’s financial position as of 30 June 2019:

  • The Group’s adjusted net debt as of 30 June 2019 stood at USD 161 million. An increase of 30% compared to 30 June 2018 was primarily driven by Romanian plant acquisition loan, extended drawdowns under the trade finance lines and larger RMI balances we had as of 30 June 2019.
  • The Group’s total debt outstanding (excluding shareholder loan) stood at USD 379 million as of 30 June 2019. During 2019FY the Group has improved its capital structure via the issuance of USD 300 million 5-year Eurobond issue, which now comprise the largest part of the debt portfolio in addition to PXF line utilized to finance through-the-cycle RMI needs
  • Our RMIs as of 30 June 2019 were USD 189 million, an increase of 71% compared to 30 June 2018 driven by larger sales volume and purchases to finance the growing trading and crushing volumes for 2020FY on the back of available permanent working capital and extended drawdowns under the trade finance lines.
  • Adjusted Net Debt / EBITDA stood at 2.2x compared to 2.1x
  • Fixed charges coverage ratio stood at 2.1x compared to 2.4x
  • The slight deterioration in Adjusted Net Debt / EBITDA and Fixed charges coverage ratios are considered to be temporary and non-systemic. The company is still committed to its path of deleveraging going forward.

Commenting on 2019FY financial results, the Group CEO Vaja Jhashi said:

“We achieved record-high performance for 2019FY. This contributed to all-time high revenues and EBITDA of USD 552 million and USD 74 million for FY 2019, an increase of over 20% compared to the results in previous financial year. We retain strong EBITDA margin of 13% on the back of our unique strategic asset base in Moldova and our wide international reach throughout Europe and MENA regions. The financial profile of the Group has substantially strengthened with a an debut issue of 5-year USD 300 million Eurobonds and lately with the renewed USD 150 million PXF line, syndicated by a number of DFIs and international financial institutions.

While the Group is performing well and we are also very optimistic about the future, and plan to sell at least 2 million metric tons of grains & oilseeds and crush some 450k metric of sunflower seeds at Floarea Soarelui (Moldova), Trans Oil Refinery (Moldova) and Romanian  crushing plant, which was acquired in 2019.”

TRANS OIL Group is pleased to announce the signing of the Revolving Pre-Export Finance facility in the amount of up to $150 million. The proceeds will be used to purchase agricultural commodities crop of 2019 from local (Moldovan) farmers and other suppliers. The facility was committed by an international banking syndication comprised of DFIs and commercial banks. The syndication includes ING Belgium, European Bank for Reconstruction and Development, UniCredit Bank Austria AG, Black Sea Trade and Development Bank, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V., Mobiasbanca – OTP GROUP S.A., OTP Bank Plc, FIMBank p.l.c., and Banque Cantonale Vaudoise.

In the height of summer, Trans-Oil Group of Companies just started producing a new astonishing off-season product at its fat-and-oil complex FLOAREA SOARELUI SA — FLORIS OLIVIO, which is the blend of sunflower and olive oils in the convenient bottle type of 0.5 liters.

According to the company's technologists, it is the top-quality product. The vegetable oils mix includes the basic product of the company Floarea Soarelui — refined and deodorized sunflower oil FLORIS (produced by the enterprise for almost two recent decades, and which technologies of production were brought to perfection), with added olive oil. The company imports olive oil from Greece — the EU country, which agricultural sector is associated with the great Mediterranean triad for millenniums: olive oil, cereals and grape wine.

The blend of FLORIS OLIVIO includes sunflower oil and olive oil in the ratio of 4:1. On the one hand, the reporting ratio provides the Moldavian consumer with the traditional set of vitamins (in particular, group E) contained in sunflower oil, and on the other hand, it enriches the product with the useful and delectable Mediterranean flavour.

In addition to the more balanced composition and higher nutritional content, the cost of the reporting sunflower-olive oils mix is cheaper than 100% olive oil. But it justifiably claims to the status of the premium product.

Moreover, the consumer will be able to enjoy the benefits of the product universality — FLORIS OLIVIO can be used without any losses of consumer characteristics, both in the process of product high-temperature treatment — cooking and frying, and for dressing of raw vegetable salads.

As a reminder, last summer the company Floarea Soarelui also offered the issue-related new product to its Moldavian consumers — crude sunflower oil FLORIS RUSTIC. In addition, the product is available in the ergonomic "garden-picnic" bottle of 0.5 liters, and it is marketed as the premium product, which has already become a success with the high-skilled chefs of Moldova. At the same time, FLORIS RUSTIC is the flavoured and bright "subject matter professional": oil for salad dressing, but not frying.

Therefore, in the current year the Mediterranean sunflower and olive oils mix FLORIS OLIVIO will join the Floris product line (in convenient consumer-oriented packaging — 0.5 l) of Floarea Soarelui.

In addition to FLORIS OLIVIO and RUSTIC FLORIS, on the Moldavian market the Floris product line also includes the well-known, classic, refined and deodorized sunflower oil FLORIS. In the nearest future, a number of new products of Floarea Soarelui SA will appear on the supermarket shelves — spicy and extremely appropriate for highly seasoned dishes on a hot August day, sunflower oil with spices. It is the bright oil for all intents and purposes — FLORIS CHILLI — with hot red chili pepper and allspice black peppercorn, as well as oil with garlic — FLORIS MUJDEI.

For several recent years, Floarea Soarelui realized a series of large-scale projects on the production modernization — reconstruction of workshops was aimed at improving of the products quality, and focused on the growth of its sales not only in bulk, but also in rather convenient packaging. Therefore, the Moldavian consumers significantly increased attention to packaged sunflower oil of the company. Also, the Chamber of Commerce and Industry of the Republic of Moldova awarded the company for achievements in the sphere of quality-2010. In the short term, modernization of the quality infrastructure of Floarea Soarelui created the required conditions for the company to start realizing the program of increasing of sales of packaged sunflower oil on the high-margin western markets — in the European Union, and the large-scale Eastern markets — to the Middle East and China. At the same time, the Floris product range certainly have rather good export potential, said the General Director of Floarea Soarelui SA, Stella Ostrovetchi.

Also, it should be noted that the highest quality of the consumer-oriented products of Floarea Soarelui is confirmed by the certificate of the most reliable international safety and quality management system ISO 22000, which the company already approved after the recent inspection at the enterprise in the current year.

Trans-Oil Group is pleased to announce that Oaktree Capital Management (OCM) has acquired a minority interest in Aragvi Holding International Ltd (the parent company of Trans-Oil Group), thus becoming a shareholder of Trans-Oil Group. Oaktree Capital Management is a leading American global asset management firm specializing in alternative investment (including private equity) with over 120 Billion USD of assets under management.

The new shareholder is expected to significantly increase the Group’s business outreach internationally, as well as to bring the highest standards of corporate governance and effective structures that will strengthen the performance of an important regional agribusiness player. 

This is the first corporate investment done by a major US global asset management firm in the Republicof Moldova, which comes after another pioneered success of 300 million USD Eurobond issue in April 2019

We would like to inform that temporary political crisis in Moldova has been resolved. Transfer of power has taken place. All state institutions are functioning in a normal mode without any disruption.

The US State Department welcomed the decision of the Democratic Party (PDM) to abandon state management in favor of the government of Maia Sandu and the new parliamentary majority elected democratically, according to a press release from the US government.

 “We are inspired by the fact that, like the new coalition, the former government conducted a peaceful transfer of power, which reflects the will of the people.”

The current political stand-off doesn’t have, neither will have any impact on Groups’ operations. All Groups’ assets, including the port terminal work without any disruption.

New crop purchasing process particular to this period undergoes normally.  All relevant state authorities work according to their schedule.

The currency stays stable and local commercial banks are working without any interruptions

In light of the recent political events in the Republic of Moldova, and certain misstatements which might appear in mass-media, Trans-Oil Group of Companies reiterates that its sole and only shareholder is Mr. Vaja Jhashi. Trans-Oil Group of Companies never had in the past and currently has no affiliation and/or businesses with any past or current political party or individual, neither directly or indirectly. The non-affiliation has been continuously confirmed via various due diligences conducted by international financial institutions. We are confident and optimistic that political parties will find democratic consensus very soon, serving the best interests of the people of the Republic of Moldova.

Trans-Oil Group is proud to announce and welcome Daniel Ruiz as the Group’s Head of Global Funding and Business Development Solutions. Daniel will oversee key financial, development and expansion projects.

During his almost 20-year career working for major banking institutions such as Societe Generale and BNP Paribas, Daniel has delivered consistent top and bottom line growth ahead of its markets. Its focus on successfully pioneering a new model of sustainable growth has served the needs of its many stakeholders and created excellent results for the Banks.

   

Tandarei crushing plant, located in Ialomita, Romania, with a processing capacity of 650 metric tons (MT) of sunflower seeds per day, was recently acquired by Global Grain International, a Romanian subsidiary of Trans-Oil Group. Since closing of the deal in March 2019, Global Grain International hired over 30 people for de-hulling and extraction departments. In May 2019, a new boiler house with an output of 4 MT of steam per hour was commissioned. In addition, by mid-June, a new meal granulator with a total capacity of 15 MT of meal per hour will be commissioned. Within the month of June, Global Grain International will be also EU certified both ISO 9001:22001 and ISCC.

 

After almost 2 years of leasing of Tandarei plant to Global Grain International, EFA Dynamic Trade Finance (EFA), a subsidiary of EFA Group, which is a Singapore based independent asset manager, has finally sold the plant to Global Grain International. This acquisition was financed by International Investment Bank (IIB) under a 7-year investment facility of EUR 10 million. IIB has also provided a long-term working capital facility of EUR 10 million. The operations in Romania will be consolidated into Trans-Oil Group consolidated financial statements for the financial year ending June 30, 2019. Full operational consolidation and earnings contribution to the Group will start from the new season, with the inception of crushing season by the end of August

Bloomberg - Olga Voitova

 

Since the deal was a debut both from the issuer and from Moldova, there was an element of price discovery required. “There hasn’t been much corporate supply from the region apart from similar Russian and Georgian single B-rated peers in the region, so that was a useful guide,” said Gladkov.

 

Investors from  Europe bought 33%  of issued bonds ,  Switzerland 29%, Great Britain  19 %, USA 18 % and other countries 1%    

TransOil scores with second attempt to open up Moldovan market

By Lewis McLellan 

2 April 2019

 TransOil, a Moldovan agricultural exporter, on Monday launched the first ever international bond from the country, completing the deal

successfully.

Citi, Renaissance Capital and UBS were bookrunners for the $300m five year benchmark, while VTB Capital joined the syndicate as joint lead

manager. The leads offered price guidance of 12% area, before printing the deal in the line with that at 12%.

The trade was “comfortably oversubscribed”, according to Andrey Solovyev, global head of DCM at VTB Capital. However, the final book size has not yet been released.

Dmitry Gladkov, acting head of investment banking at Renaissance Capital, said: “The book was well covered by indications of interest when we finished the road show [on Friday, March 29].”

Since the deal was a debut both from the issuer and from Moldova, there was an element of price discovery required. “There hasn’t been much corporate supply from the region apart from similar Russian and Georgian single B-rated peers in the region, so that was a useful guide,” said Gladkov.

TransOil attempted to make its bond market debut in February 2018, but was unsuccessful because of market conditions. “The market went completely quiet when the issuer tried to come to the market last February,” said Gladkov. “The concerns around the US interest rate peaked then and wiped out upcoming issuances in the dollar space. “However, the company used its time well and came back with a stronger offering to the market. We had the 144A tranche as well as the Reg S, and a new rating from Fitch, as well as managing to secure an anchor investment from the Black Sea Trade and Development Bank, which helped to validate the transaction.”

Upon successful completion of road-show, Trans-Oil Group (Aragvi Holding International Ltd) is pleased to announce that

on 1 April 2019 it successfully priced debut for the Group and for the country senior secured Eurobond

issue of US$300 million at par. The issue’s settlement date is on 9 April 2019 with a maturity of 9 April 2024.

The offering received strong international interest with European and US investors. The bonds are expected

to be officially listed on the Irish Stock Exchange on or around 9 April 2019.

Citibank Global Markets, Renaissance Securities and UBS AG acted as joint lead managers and

bookrunners for the US$ Rule 144A/Reg. S issue.

The bonds are rated B by Fitch and B- by S&P.

The TRANS OIL Group and the international banking consortium signed in Geneva  on March 26, 2019 an agreement on Pre-crop financing in the amount of $35 million to finance  the needs of agriculture, which will allow to expand the volume of financing of farms and economic agents and, as a result, increase the acreage to 65,000 hectares. from the 2018 harvest in the Republic of Moldova from producers and economic agents.

The international banking consortium included Société Générale S.A., Company Overview of Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.(FMO), IIG Bank (Malta) Ltd

Arab Bank (Switzerland) Ltd., FIMBank p.l.c.