DTEK plans to invest $1,3 billion in 2013 in the modernization of the companies
DTEK plans to invest $1,3 billion in 2013 in the modernization of the companies
Reuters
DTEK the largest Ukrainian private vertically integrated energy holding within the scope of offer to refinance up to 60% of its five-year Eurobonds issued in 2010 on $500 million, has received positive offers from holders of 74% of issue.
According to DTEK report its total amount made up $370,117 million at the London Stock Exchange on Tuesday.
In its proposal to refinance on March 12 DTEK specified that is ready to redeem existing bonds with face value $1000 at price $1062,5 if application is submitted up to 25 March and at price $1012,5 - up to 9 April.
At the same time the holding company noted that the redemption of the bonds takes place in case that the terms of issue of new bonds will be satisfactory. Otherwise DTEK will pay to the holders of existing bonds which submitted it to the redemption $5 for every $1000 face value.
It was reported that on the eve of the announcement on refinancing it became aware that DTEK plans to issue new debt securities in the amount of $1,5 billion. Deutsche Bank AG and JP Morgan Securities were hired by the holding company as transaction dealer managers.
Funding is needed for the development of the holding energy companies including the reconstruction of the equipment (in 2013 it is planed to invest in the modernization of their businesses more than $1,3 billion).
It is also became aware that the company DTEK Holdings B.V. (Netherlands) which is the part of the largest private vertically integrated energy holding of Ukraine DTEK places 5-year dollar Eurobond, benchmark yield about 8.25%.
Bonds are placed by indicative amount (benchmark). The organizers of the placement are Deutsche Bank, ING, JP Morgan (B&D), Sberbank RF, UniCredit Bank and VTB Capital.
Note that DTEK was created in 2005 to manage the energy assets of System Capital Management (SCM, Donetsk) of Rinat Akhmetov. It was delegated to the corporation the functions on strategic management of group companies that make up the vertically integrated chain of mining and processing of coal, production and sale of electricity.