Kiev, 21 July, 2008 – Donbass Fuel-Energy Company is finalizing the procedures for an issue of internal bonds to an amount of UAH 500 m. It is planned to place them at PFTS by the end of the current month. The securities have been issued for the term of 3 years with a coupon payment at the rate of 10.5% p.a.

 

DTEK is planning to use the raised funds to replace secured loans in the Ukrainian market as well as for other corporate purposes.

 

Fitch Ratings global rating agency assigned a AA-(ukr) rating to these securities. Up to the present, it is the first issue of a Ukrainian power company with both an international issue and issuer’s rating as well as the first UAH issue of the SCM Group to which DTEK is a part.

 

‘This issue will enable us to diversify the credit portfolio, reduce the currency risks of the Company and minimize the consequences of the volatility of western capital markets for the Company. For us, it is also important that this issue will make it possible to attract national investors and will become the next stage in the establishment of a successful credit history of the Company’, pointed out the Chief Financial Officer of DTEK, Yuriy Ryzhenkov.

 

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 of 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 in the fuel-energy industry of Ukraine. According to 2007 results, the Company’s share in the Ukrainian coal mining industry was 20.9%; its share in thermal generation was 27.0% and 5.4% in electricity distribution.