VTB Group Lends to DTEK
OREANDA-NEWS. November 02, 2011. Russian Commercial Bank (Cyprus) Ltd., VTB Group member, and DTEK, the largest privately owned energy company in Ukraine, have signed a loan agreement providing for a RUB 10 billion credit facility for 5 years, reported the press-centre of VTB.
Proceeds will be used for general corporate purposes, including but not limited to financing working capital, CAPEX and M&A needs, in line with DTEK’s long-term business development strategy.
Yuri Soloviev, First Deputy President – Chairman of the Management Board emphasized that ‘VTB Group is aimed at enhancing cooperation with the largest companies from various economy sectors. DTEK is a leader in Ukraine’s fuel and energy market, and we aspire to further develop mutually reinforcing cooperation between VTB Group and DTEK’.
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DTEK is the largest privately-owned vertically-integrated energy company in Ukraine, with efficient enterprises that mine and prepare coal as well as operate on electrical power generation and supply markets. The Company is the energy division of System Capital Management (SCM), one of Ukraine’s leading financial and industrial groups. The coal business of DTEK is represented by DTEK Pavlogradugol (consisting of 10 coal mines), DTEK Dobropolyeugol (5 mines), DTEK Mine Komsomolets Donbassa and five coal preparation plants. The power generation business of DTEK is represented by Vostokenergo and the associated companies Dneproenergo, where DTEK owns 47.55%, and Zapadenergo, where DTEK together with affiliate companies holds 25.06%. Service-Invest, DTEK Energougol ENE and the associated Donetskoblenergo Company, where DTEK holds 30.6%, represent the electricity sales and supply business of DTEK. DTEK also holds a 39.98% stake in Kievenergo, a company generating and supplying heat and electricity.
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