Ukrainian agribusiness group Kernel plans to issue $50 million in US dollar-denominated corporate bonds on the domestic stock market, offering an initial annual coupon rate of 5.75%. The transaction could set an important precedent for the development of Ukraine's domestic debt capital market and the ability of Ukrainian businesses to raise foreign currency financing.
Ukraine's National Securities and Stock Market Commission (NSSMC) has registered a public offering of Series D corporate bonds by Kernel-Trade, a subsidiary of Kernel, one of Ukraine's largest agricultural holdings.
The total issue size is $50 million, with the offering scheduled for November 9–20, 2026, through the PFTS Stock Exchange. According to the regulator, this is Ukraine's first public offering of foreign currency-denominated corporate bonds of this magnitude.
Terms of Kernel's Bond Offering
The company plans to issue 50,000 bonds with a face value of $1,000 each. The securities will be unsecured, meaning the issuer will not provide collateral to guarantee repayment of its obligations.
Key terms of the offering:
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Total issue size: $50 million.
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Face value: $1,000 per bond.
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Initial coupon rate: 5.75% per annum in US dollars.
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Fixed-rate period: the first six quarterly interest periods, or approximately 18 months.
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Subsequent coupon rate: between 2% and 10% per annum, to be determined by the issuer's Supervisory Board.
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Interest payments: quarterly.
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Maturity date: November 2029.
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Offering period: November 9–20, 2026.
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Stock exchange: PFTS.
The offering is being arranged by Raiffeisen Bank and investment firm Univer Capital. Investors will be able to purchase the securities through licensed investment firms and brokers with access to trading on the PFTS Stock Exchange.
How Kernel Plans to Use the $50 Million Proceeds
The proceeds will be used to finance the agribusiness group's operating activities, primarily agricultural commodity purchases, oilseed processing, and export and logistics operations.
Planned allocation of proceeds
| Use of Proceeds | Share | Amount |
|---|---|---|
| Agricultural commodity purchases | 60% | $30 million |
| Oilseed processing | 30% | $15 million |
| Trading, exports and logistics | 10% | $5 million |
Calculated based on the intended use of proceeds disclosed by the NSSMC.
The majority of the capital raised will therefore be allocated to financing the agribusiness group's working capital requirements rather than acquiring new assets or implementing a separate investment project.
Features of Foreign Currency Bonds and Investor Risks
One of the offering's main features is that the bonds are denominated in US dollars, giving investors access to a debt instrument whose value is expressed in a foreign currency.
However, actual payments in US dollars will depend on Ukraine's foreign exchange regulations. The NSSMC emphasizes that restrictions imposed by the National Bank of Ukraine remain in force under martial law. Consequently, interest payments and principal repayment will be governed by the regulations applicable at the time of payment.
In addition to foreign exchange regulatory restrictions, investors should consider the issuer's credit risk, the absence of collateral, potential interest rate adjustments after 18 months, and limited secondary market liquidity.
Registration of the bond issue by the NSSMC does not constitute a guarantee of capital repayment or the stated investment return.
Kernel's Financial Performance: $4.4 Billion in Revenue and $558 Million in EBITDA
Kernel's entry into Ukraine's domestic foreign currency bond market comes amid an improvement in the agribusiness group's financial performance.
For the 2026 financial year ended June 30, the company increased revenue by 7% to $4.404 billion, while EBITDA rose by 20% to $558 million.
Despite improved profitability, the group's debt burden increased significantly. Net debt reached $736 million as of June 30, 2026, compared with $143 million a year earlier.
Kernel's Board of Directors recommended against paying dividends for the 2026 financial year, prioritizing liquidity preservation, the restoration of damaged infrastructure, and financing operational activities amid increasingly challenging logistics conditions.
Why Kernel's Bond Offering Matters for Ukraine's Capital Market
Until now, major Ukrainian corporations have primarily raised foreign currency debt financing through international banks, Eurobond issuances, or private loan agreements. The domestic stock market has played a much smaller role in such transactions.
Kernel already has extensive experience in international debt financing. The company previously completed three Eurobond issuances, cooperated with the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB), and secured pre-export financing from foreign banks.
The current issuance is distinctive because foreign currency-denominated corporate bonds are being offered publicly on the Ukrainian domestic market.
According to the NSSMC, this mechanism could expand financing opportunities for Ukrainian exporters that generate foreign currency revenue and seek to diversify their sources of capital.
For investors, the offering creates an additional opportunity to allocate capital to US dollar-denominated debt instruments issued by Ukrainian corporations.
A successful $50 million bond placement by Kernel could establish a precedent for other major Ukrainian companies seeking to raise foreign currency financing directly through the domestic capital market. However, the broader adoption of such instruments will depend on investor demand, foreign exchange regulations, and the development of a liquid secondary market.
