Dniproenergo to Sign Investment Agreement Today

DTEK announced yesterday that it will sign an investment agreement with Dniproenergo (DNEN: HOLD) today. According to Dniproenergo, Investment Company (or its founders, coal mines affiliated with DTEK) will pledge to invest USD 200 mln over the next five years on equipment modernization and social programs. Alexander Paraschiy: As we wrote in our August 31 report, the investment agreement is beneficial for DTEK, as it will position itself as an efficient investor in Dniproenergo. Moreover, up to 80% of invested money (if used for CapEx) can be paid back from Dniproenergo’s tariffs in the mid-term. Dniproenergo will win from the deal in the form of launching a large-scale modernization program, which it was previously unable to finance.