Головна сторінка
/
Новини
/

DTEK considers up to USD 1.5 bln in debt financing

DTEK considers up to USD 1.5 bln in debt financing

4 March 2013

Ukraine’s biggest energy holding, DTEK (DTEKUA), might issue debt instruments of up to USD 1,500 mln in 2013-14, according to the released extended agendas of the EGMs of its subsidiaries, Zakhidenergo (ZAEN) Dniproenergo (DNEN), Kyivenergo (KIEN) and Komsomolets Donbasa Mine (SHKD). Shareholders are scheduled to vote this week to give permission for each company to pledge its assets for the possible loans.

Alexander Paraschiy: DTEK’s intention to issue new debt as soon as possible is the likely reason it initiated EGMs for its key assets in early March (ahead of the regular AGMs, which usually take place in late March to late April). The intention looks logical, as currently DTEK’s 2015 Eurobond trades at a YTM close to 8.0%, far better than its coupon rate of 9.5%. The holding looks well-positioned to raise its debt – its estimated gross debt/EBITDA for end-2012 is close to one, and if the company attracts new debt based on its maximum plan, its leverage will still be insignificant (debt/EBITDA close to 2, below the Eurobond covenant of 3).

The other question is how it uses the potential funds. The holding does not look as if it will invest in expanding its traditional segment this year as it has almost finished the process of acquiring the most prospective electricity assets in Ukraine. Most likely, DTEK will invest in new directions, like oil and gas exploration or its energy-trading business (electricity/gas). Another possible direction is extensive modernization of its acquired electric assets (Kyivenego, Dniproenergo).

Останні новини

News

23

02/2022

Separatists may claim entire territories of two Ukrainian regions

Russia has recognized “all fundamental documents” of the self-proclaimed Donetsk and Luhansk People’s Republics (DNR...

News

23

02/2022

U.K. to provide USD 500 mln loan guarantee for Ukraine as IMF mission starts

The British government is going to provide up to USD 500 mln in loan guarantees...

News

23

02/2022

MinFin bond auction receipts jump to UAH 3.5 bln

Ukraine’s Finance Ministry raised UAH 3.3 bln and EUR 7.2 mln (the total equivalent of...