For financing of its M&A programme, ‘Donbass Fuel-Energy Company’ Ltd. (‘DTEK’, Donetsk) concluded an agreement with Erste Bank (Austria) for a stand-by loan amounting to EUR 50 million that allows for it to receive financial resources both in the form of loans and in the form of letters of credit and guarantees.

As informed by the Corporate Communications Department of DTEK on Monday, the funds raised are planned for the acquisition of additional coal production capacities and shares in power generating and distributing companies in the open market.

‘One of the key vectors in the strategy of our company is the diversification and expansion of our business and acquisition of new assets. To achieve this, we are planning to raise external borrowings both in Ukraine and international financial markets’, the press release quotes the Chief Financial Officer of DTEK, Yuriy Ryzhenkov.

‘We are glad to have DTEK now among our clients. Our bank’s strategic approach to key corporate clients in the country and our strong local team enabled us to close this important transaction in a challenging market environment’, commented Ingo Bleier, Head of Corporate Solutions of Erste Bank.

The SCM Group of Rinat Akhmetov delegated to DTEK the functions of the strategic management of the enterprises making a vertically integrated chain of coal production and processing to electricity generation, transmission and supply.

DTEK manages Pavlogradugol OJSC, Komsomolets Donbassa Mine OJSC (coal production), Mospinskoye Coal Enrichment Plant Ltd., Pavlogradskaya Coal Enrichment Plant Ltd., Kurakhovskaya Coal Enrichment Plant Ltd., Dobropolskaya Coal Enrichment Plant OJSC and Oktyabrskaya Coal Enrichment Plant OJSC (coal processing), Tekhrempostavka Ltd., Vostokenergo Ltd. (electricity generation), Service-Invest Ltd. and PES-Energougol OJSC (transmission and supply of electricity).

DTEK is a 100% subsidiary of the Cyprian DTEK Holding Limited.


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