The European Bank for Reconstruction and Development (EBRD) and Coal Energy S.A. (Luxemburg) with assets in Ukraine on December 21, 2012 signed documents on a $70 million financing.
“The successful realization of the project shows that private companies such as Coal Energy have real chances for raising funds on the favorable conditions, despite the complicated situation on the capital markets,” the director of the investment and banking department at Dragon Capital Investment Company, Mykhailo Hranchak said.
“The project will not only promote the further development of Coal Energy, but it will also be a positive signal for investing in the Ukrainian coal industry,” the expert said.
As reported, EBRD will lend $70 million to Coal Energy in two equal tranches. The loan will have availability period of three years and interest rate of LIBOR (six months) + 5.85% per annum.
Coal Energy S.A. will use the loan proceeds to improve the efficiency and safety of its production capacities, located in eastern Ukraine, as part of an overall modernization program.
The facility will be provided in two equal tranches, the first of which will finance the waste coal recycling and coal processing operations of Coal Energy. The second tranche will be aimed at the development of recycling operations, health and safety upgrades as well priority energy efficiency measures.
Coal Energy, set up on the basis of assets of Donetsk-based Mechanic scientific and production amalgamation’s enterprises, runs ten coalmines and recycling and processing plants. The company sells coal to heat and power, coking and cement plants and municipalities. It also exports coal to Bulgaria, Slovakia, Moldova, and Turkey.
Prior to its initial public offering (IPO), 100% of Coal Energy’s shares belonged to Cyprus-based Lycaste Holdings Limited, which is 50:50 owned by Viktor Vyshnevetskyy and Maryna Vyshnevetska.
In the 2012 financial year, which ended on June 30, 2012, Coal Energy boosted consolidated net profit by 4.3%, to $38.44 million, its revenues rose by 9.7%, to $165.45 million. Exports accounted for 32.9% versus 25.6% in the 2011 financial year.
