OREANDA-NEWS. On July 14, 2008 Donbass Fuel-Energy Company has raised EUR 50 m stand-by loan arranged by Erste Bank Group and Erste Bank Ukraine. The facility has been structured for M&A purposes in order to provide DTEK with a financing concept, that allows to draw in cash but also guarantees/LCs, should that be required in the context of an acquisition, reported the press-centre of Donbass Fuel-Energy Company. 

The funds raised will be used for the acquisition of additional coal production capacities and shares of power generating and distributing companies in the open market.

‘One of the key vectors of our company’s strategy is business development and diversification, acquisition of new assets. For this purpose we are planning to raise external borrowings both in Ukraine and international financial markets. This contract is of high importance for us as a sign of trust of one of the most efficient bank in Central and Eastern Europe - Erste Bank. We are grateful to our colleagues for their professionalism and cooperation. I consider this deal between DTEK and Erste Bank will become a welcome exception with regard to the current financial market environment with its negative trends’, noted DTEK’s CFO, Yuriy Ryzhenkov.

‘We are glad to have DTEK now among our clients. Our bank’s strategic approach to key corporate clients in the country and our strong local team enabled us to close this important transaction in a challenging market environment’, commented Ingo Bleier, Head of Corporate Solutions of Erste Bank.

Natalia Kulikova, Head of Group Large Corporates of Erste Bank Ukraine stated “This transaction is one further step for Erste Group?s envisaged strategy to acquire a sustainable position as advisor and financing partner for leading Ukrainian corporates”.