Ukraine’s DTEK to place additional USD 150mn Eurobonds.

By bne IntelliNews April 23, 2013

DTEK Finance company, which is a 100% subsidiary of the Netherlands-based DTEK Holdings BV, has decided to place USD 150mn additional Eurobonds, the company announced this in a statement on the London Stock Exchange. The yield rate of the Eurobonds will be 7.875% per annum and the maturity date is 2018. The Eurobonds will be issued as additions to the existing Eurobonds worth USD 600mn. The company will channel the raised funds for general corporate purposes, including financing its current capital investment programs, financing its working capital, repaying certain debt, and, to a lesser extent, investments and new acquisitions. The bonds are expected to be placed on April 30 2013.

Moody's has assigned B3 rating to DTEK Finance's (100% subsidiary of DTEK Holdings B.V.) USD 600mn Eurobonds. The outlook for the rating is negative. According to the Moody's rating scale, securities and issuers with B rating are considered rather risky for long-term investments.

The Eurobonds have a yield rate of 7.875%, maturing in 2018. DTEK plans to use USD 321.25mn out of the proceeds from the placement of the Eurobonds to buy back the Eurobonds it issued in 2010 for USD 300mn (yield rate of 9.50%, maturity date of 2015). The bonds are expected to be issued on April 4. The lead managers for the bond issue are Deutsche Bank, ING, JP Morgan, Sberbank CIB, UniCredit, and VTB Capital.

Fitch Ratings has assigned DTEK USD 600mn Eurobonds final senior unsecured rating of B and Recovery Rating of RR4. According to Fitch, the notes benefit from guarantees and sureties from several holding and operating companies, all owned by DTEK, and together referred to as DTEK Group.

DTEK finished 2012 with a consolidated net profit of UAH 5.922bn (USD 738mn) up by 68% y/y. In 2012, DTEK increased consolidated net revenue 2.09 times to UAH 82.58bn. In particular, the revenues of coal mining in 2012 made up UAH 7.06bn, of electricity production - UAH 30.73bn, and of electricity deliveries - UAH 36.84bn.The company’s EBITDA grew by 64.7% y/y to UAH 16.9bn. In 2011, DTEK increased consolidated net revenue by 62.98% to UAH 39.59bn. DTEK manages energy assets of the System Capital Management company (Donetsk). Businessman Rinat Akhmetov owns 100% of the System Capital Management company.

Related Articles

Latvia issues permits to new gas infrastructure holding

The Latvian Public Utilities Commission (SPRK) announced on January 5 that it has issued licences to Conexus Baltic Grid for the transmission and storage of gas. Conexus Baltic Grid will control ... more

Iran to seek arbitration over termination of gas flow from Turkmenistan

The National Iranian Gas Company (NIGC) intends to take its recent gas dispute with Turkmenistan to international arbitration, Mehr News Agency reported on January 4, citing ... more

CEZ ignores Czech finance minister and re-elects CEO

The supervisory board at Czech power group CEZ ignored pressure from the finance ministry to dump the current management, local media report. Finance Minister Andrej Babis has been accumulating ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss