OREANDA-NEWS. On 29 January 2008 Dniprovskiy Steelworks announced its plans to increase its charter fund by 144% to USD 355.4mn. The equity increase is to be done through the issue of 4.0bn new ordinary shares at USD0.05 par value. The equity issue will be considered at the AGM on 20 March and if approved will take place from 12 May to 5 December 2008. The rise is aimed at financing modernization and an increase in working capital.

The equity issue had been previously announced by the company but not voted on at the AGM on 12 October 2007. The new equity issue looks consistent with DMKD's plans to invest USD 0.53bn for modernization in 2008. We think that the postponing of the capital increase is due to adjustments to the modernization schedule.