KDD Group to Invest USD 600 mln in 2008

According to Interfax, KDD Group (KDDG LN: N/R) has announced its plans to invest USD 600 mln in the development of its projects in 2008. Company Vice President Petr Radchuk also said that KDD Group is eyeing an SPO in 2009. Alexander Romanov: The announced budget for this year is in line with the previously declared construction schedule and, we believe, is already factored into KDDG’s market price. Though the budget could be considered a bit of a stretch, it remains feasible. Proceeds from the recent share placement will cover one quarter of the necessary amount. Another USD ~200 mln may be covered from presales of residential projects (Pechersk, Zazimye, Diplomat-Park). The remaining USD 250 mln could be filled by debt financing.