Donbasenergo attracts UAH 1.3 bln loan for modernization
18 June 2013
Power GenCo Donbasenergo (DOEN UK) announced on June 17 it signed a UAH 1.337 bln loan agreement with the state-owned Oschadbank (OSCHAD) to partially finance the reconstruction of its 7th power unit at its Slaviansk TPP. Earlier this month, the company had a modernization program of the 800 MW unit worth UAH 2.52 bln approved by the Cabinet of Ministers. Now Donbasenergo is waiting to receive approval for its program of partial compensation of its reconstruction costs (which will cover 60%- 80%) that will involve a special surcharge to its electricity tariff (i.e. at the expense of power consumers. Refer to our June 7 news for more details).
Alexander Paraschiy: The news look encouraging for Donbasenergo, raising the chances that its recently approved ambitious reconstruction projects will go forward. Recall on June 5, the Cabinet approved two projects for Donbasenergo worth UAH 9.33 bln (USD 1.15 bln). We estimate that these two projects alone (as well as partial compensation of its costs) would triple the company’s value. Currently, Donbasenergo trades at EV/Capacity of USD 47/kW, while the total cost of the reconstruction of the two power units (which, again, is set be compensated by at least 60%) is USD 785/kW.
