Kyivenergo approves USD 220 mln World Bank loan, 2007 dividends

Kyivenergo (UX: KIEN UK) shareholders approved of the attraction of a USD 220 mln loan from the World Bank at an AGM yesterday. Funds will be used to construct and renovate several substations and main power lines. Shareholders also reshuffled Kyivenergo’s supervisory board.  In addition, shareholders approved of paying out 30% of 2007 profit as dividends (total amount of UAH 4.3 mln) and directed the remainder into development (DPS: UAH 0.04 per share, dividend yield: 0.2%). Yegor Samusenko: As we expected, changes to Kyivenergo’s supervisory board were insignificant: DTEK retained control over the enterprise. The loan approved by shareholders still must be approved by the creditor, which is expected in May. Though we expect approval of the loan and low 5-6% cost of this financing, we await details on the deal. We think this loan is already priced in.