TKS Receives USD 8 mln Loan to Expand Construction Capacity
24 January 2008
According to Interfax, OTP Bank opened for a Ukrainian developer TKS Management (37W1 GR: BUY) a USD 8 mln five-year credit line at an undisclosed rate. Financing will be used to expand the capacity of the developer’s construction subsidiary, TKS-Evrobud, by four times in 2008 to 150 ths m2. Total investment in this project in 2008 is estimated at USD 18 mln (2007 investments totaled USD 6 mln). Andriy Gostik: The news is positive for the stock given the company’s proven experience in construction and high demand for construction services in the market. Previously, we wrote that TKS plans to invest USD 120 mln in its real estate projects in 2008 and will construct 100 ths m2 of properties this year. Quadrupling construction capacities will allow the company to save on construction costs by doing general works in-house and earn additional revenues by performing construction works for third parties.
