Kiev, 01 July 2008. – Donbass Fuel-Energy Company Ltd. is planning to issue internal bonds amounting to UAH 500m for a term of 3 years. Payment on securities will be made according to coupons with a rate of 10.5%. Fitch Ratings global rating agency has assigned AA-(ukr) rating to these securities.

Ratings of a АА(ukr) level assigned by the Agency characterize the issuer or the papers to which it is assigned as those having a high creditworthiness; the exposure to circumstances influencing the fulfillment of obligations is not significant.

The funds raised as a result of the bond issue are planned to be used for capital investment and general corporate needs.

The level of the rating assigned to the Company’s bonds is in line with the long-term rating of DTEK on the national scale. In October 2007, DTEK was assigned a Long-Term Issuer Default Rating (IDR) at the level of ‘B+’, a Short-Term Issuer Rating at the level of ‘B’ and a National Long-Term Rating ‘AA-(ukr)’ with a stable outlook by Fitch Ratings. Furthermore, in October of the previous year, Moody's Investors Service international rating agency gave the Company a Long-Term Corporate Rating of ‘B2’ with a ‘stable’ outlook.

Commenting on the issue of the internal bonds, Yuriy Ryzhenkov, the CFO of DTEK, said: ‘To finance its development, the Company applies various financial instruments, including public loan deals. DTEK can enjoy such liberty of choice thanks to its efficiency, transparency and trustworthiness’. 

Reference

Donbass Fuel-Energy Company (DTEK) is the first private vertically integrated energy company of Ukraine. It is a part of the financial and industrial group System Capital Management (SCM). The enterprises of DTEK build up an efficient operational chain from coal production (Pavlogradugol OJSC, Komsomolets Donbassa Mine OJSC) and enrichment (five enrichment plants), electricity generation (Vostokenergo Ltd.) and distribution (Service-Invest Ltd., PES-Energougol OJSC).
 
DTEK is the leader of the fuel-energy industry in Ukraine. According to 2007 results, the Company’s market share in the Ukrainian coal mining industry was 20.9%; its share in thermal generation was 27.0% and 5.4% in electricity distribution.

Fitch Ratings is a global rating agency committed to providing timely and accurate opinions of issuers’ creditworthiness; conducting top quality credit analysis and rendering premium analytical services to issuers, investors and bankers. Fitch Ratings is dual-headquartered in New York and London, operating 49 offices in more than 90 countries. Fitch Ratings is a subsidiary of Fimalac, S.A., an international financial group headquartered in Paris, France.