Kyivenergo Signs Long-Term Lease Agreement with Kyiv

According to the press service of Kyivenergo (KIEN: HOLD), last Friday the company signed an agreement with the Kyiv City Administration to lease heat and power plants, boilers and heat distribution networks belonging to the city of Kyiv until December 31, 2017. Alexander Paraschiy: We believe the signing of the contract (which is in fact a technical procedure to implement the decision by the Kyiv City Council adopted on April 23) finally eliminates all risks of asset stripping for Kyivenergo. As was approved by the Kyiv City Council, the lease payment set at 10% of the company’s net income, but not less than UAH 2 mln (USD 0.4 mln) p.a.