Donbasenergo to Organize Tender for Bank Loan to Purchase Coal

Donbasenergo (DOEN: HOLD) has scheduled a tender for the provision of a short-term UAH 30 mln (USD 5.9 mln) bank loan. Alexander Paraschiy:  The loan is needed to purchase coal to meet increased coal stockpile requirements (refer to our September 10 note on GenCos), as a result of which GenCos started to see a cash deficit to accumulate required stockpiles. We expect this to imply the prolongation of a regulation allowing Gencos to use gas-fueled power units in October 2007. This will benefit Dniproenergo (DNEN: HOLD) and Centrenergo (CEEN: HOLD) which both have gas-fueled power units.