Dniproenergo seeks banks to loan it USD 130 mln over next 4 years

Dniproenergo (DNEN: BUY) announced yesterday it will hold two tenders to select banks to provide it with credit lines totaling USD 130 mln. The company plans to attract USD 30 mln from a revolving credit line, with a term from November 2008 to November 2009, and USD 100 mln from a non-revolving credit line, over October 2008 to December 2013. The winners of the both tenders will be disclosed on October 7. Alexander Paraschiy: Dniproenergo plans to spend the short-term loan to finance its current operations (probably, to increase the company’s coal stockpiles). The long-term financing is likely to be directed into the company’s investment program: Dniproenergo’s preliminary plan foresees spending USD ~400 mln on modernization by 2012 – part of a needed amount (USD ~200 mln) will be financed directly by parent DTEK.