Dniproenergo plans to issue UAH 202 mln bonds

Dniproenergo (DNEN) yesterday announced that it is planning a private placement for UAH 202 mln in local bonds. The issue is up for approval by shareholders at the company’s AGM scheduled for March 24, 2009. Alexander Paraschiy: As we wrote earlier, Dniproenergo’s bond issues would be a mechanism through which DTEK can fulfill its investment obligation. According to the plan, Dniproenergo would issue five series of UAH 202 mln bonds each year from 2009-2013, (tenor – 30 years, coupon rate is 0.001%), and all issues would be bought out by DTEK-related companies. Nevertheless, we believe bond issuance by Dniproenergo is unlikely this year: DNEN’s main shareholders, the National Energy Company and DTEK, still have different visions on the number of DNEN shares and their stakes in DNEN’s capital, thus there is a low chance that the March 24 AGM will take place.