The Fortenova Group, the successor to the Agrokor conglomerate, will refinance the 2017 roll-up loan by issuing a four-year bond of up to €1.2 billion at 7.3% interest plus EURIBOR with a 1% floor, the group said on Friday.

The Board of Directors has given the go-ahead to the groups’s executives to propose that the general shareholders’ assembly and the holders of depository receipts approve the refinancing of the Super-Priority Term Facilities Agreement of 8 June 2017, Fortenova said. The refinancing will be led by the US investment fund HPS Investment Partners with the participation of the Russian bank VTB.

Upon receipt of final approval, the Fortenova Group will issue a four-year bond of up to €1,2 billion at an interest rate of 7.3%, plus EURIBOR with a floor of 1%, the group said.

The roll-up loan of €1.06 billion was taken to cover Agrokor’s debts.