Croatia's Agrokor retail unit says parent co places euro-/dollar-denominated bonds

Konzum said in a bourse filing it has provided guarantees, alongside other Agrokor Group subsidiaries, for the placement of a 325 million euro ($418 million) and a $300 million (233 million euro) tranche of unsecured bonds.

The euro-denominated bonds will bear an annual interest of 9.125% while the dollar-denominated debt will bear an annual interest of 8.875%. The paper will mature on February 1, 2020.

Agrokor has said the proceeds from the debt issue will be used in combination with cash on hand to repay existing obligations under a syndicated and a club loan as well as under loans taken out from the European Bank for Reconstruction and Development, the International Finance Corporation and Credit Agricole.

In April, Agrokor issued a bond worth 300 million euro.

Based in Zagreb, Agrokor has operations in food and beverages, as well as in food retailing.

($=0.7767 euro)