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Oil & Gas
Authorities signal Vanco may stay on Prykerchenska project. In its press release, Vanco said it believes consultations with Interagency Committee for the Settlement of Investment Disputes, lead by the Head of Ukraine's Security and Defense Council Raisa Bohatyryova, have been positive. The company expects local authorities to soon approve a budget for the development of the Prykerchenska oil & gas field. The company also said it is ready to invest USD ~250 mln on development of the Prykerchenska oil & gas field by 2010. On May 21 the Vice Prime Minister of Ukraine Alexander Turchinov said the Cabinet decided to revoke the Production Sharing Agreement (PSA) with Vanco for the development of the Prykerchenska field on the Black Sea shelf, on the grounds that it was “a corrupt deal”. Vladimir Nesterenko: It looks like the President, who seemed to back Vanco before, has stepped in to support the company once again. We believe there is not enough time for Prime Minister Yulia Tymoshenko to shut the door on Vanco before she herself bows out of the government. Despite of the possibility that the deal might have been not perfectly clean, it was the first PSA in Ukraine and the case with Vanco will be a benchmark for the rest of investment community.
Banking
Rodovid Bank to attract USD 200-250 mln in financing in 2008. Rodovid Bank (RODB: BUY) is planning to attract USD 150-200 mln via a Eurobond issue and USD 50 mln through a syndicated loan by the end of 2008, bank CEO Denis Gorbunenko told journalists yesterday. According to Gorbunenko, the most likely candidate to lead manage the loan is the European Bank of Reconstruction and Development. Gorbunenko said that Rodovid Bank is targeting to extend its branch network by 28% yoy to 200 branches in 2008.
Asset Management
Ukrainian asset management funds rise 26% YTD as of end-April. Ukrainian asset management companies saw the value of their funds pick up 26% YTD to UAH 51.4 bln (USD 10.6 bln) at the end of April, the head of Ukrainian Association of Investment Business Council Dmytro Leonov told Interfax yesterday. According to him, the main contributors to the growth were venture (+26.8% YTD) and closed-end investment funds (+25.8% YTD), while open-end funds decreased their assets 13.2% YTD during the period.
Fixed Income
Fitch assigns DTEK’s upcoming bond issue expected AA-(ukr) rating. Fitch Ratings announced yesterday it assigned the Donbas Fuel Energy Company’s (DTEK) prospective local bond issue an expected national senior unsecured local currency rating of AA- (ukr). DTEK hasn’t yet declared the bond issue volume and coupon rate. Proceeds from the bonds are expected to be used for capital expenditures. The bonds will be an unsecured obligation of DTEK, guaranteed by DTEK's four major operating subsidiaries (Eastenergo, Tehrempostavka, Pavlohrad Coal and Komsomolets Donbasa (SHKD: SELL).
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