Ekosem-Agrar Bond Issue Closes Early after Oversubscription

The subscription period for the corporate bond issue from agricultural company Ekosem-Agrar has closed early because of high demand, reports the Stuttgart stock exchange (Boerse Stuttgart).

Ekosem-Agrar, the Germany-based company holding company of Russian farm operator Ekoniva, announced on 26 November that it would begin subscription of the bond, which offers a coupon of 8.5% and term of six years. The issue was its second this year, following the company’s oversubscribed €50m placement and will also be listed on Boerse Stuttgart’s Bondm trading segment for medium-sized enterprises.

Following the early closure of subscription for the Ekosem-Agrar bond at 10.45 Central Eastern Time (CET) on 26 November because the issue was heavily oversubscribed, trading – on a when-issued basis – started the next day. It was the sixth issue in the Bondm trading segment for medium-sized enterprises in the current year. All bonds of medium-sized enterprises listed in Bondm are denominated in nominal units of €1,000.

“The subscription of Ekosem-Agrar’s second corporate bond was as successful as the first,” said Sabine Traub, head of the primary market group at Boerse Stuttgart. “The total subscription volume of €60 million was placed on the market within a very short time.”

There are now 24 corporate bonds with a total volume of around €1.6 billion listed in the Bondm trading segment, which was launched in May 2010.

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