Daily monitor

EBRD has announced its intention to provide a USD 80 mln subordinated loan to Forum Bank [FORM UZ, N/R].

EBRD has announced that it will lend USD 100 mln to Ukrsibbank, Ukraine’s 4th largest bank by assets, via a 10-year subordinated loan. The EBRD Board of Directors meeting slated to approve the deal is set for June 30, 2009.

According to RIA news, on June 2, an international conference between Ukraine and Russia regarding aviation engine production will take place in Zaporizhya. Motor Sich [MSICH UZ, BUY], a large aviation engine producer in Ukraine, will be one of the key bidders on engine development for the MC-21 long-haul aircraft. The first test flight of the new MC-21 aircraft is planned for 2015. The value of the new aircraft project development estimated at USD 8 bln.

According to a Kremenchug city employment center, Kryukiv Railcar [KVBZ UZ, U/R], based in Kremenchug (Poltava Oblast), has decided to lay off an additional 796 employees in July. The main reason for decreasing the staff count is the absence of orders for freight raicars. KVBZ had about 9 thd employees before the start of the crisis in the railcar production industry (October 2008).

Ukrainian News reported on coke production for May, which amounted to 1.41 mln mt. This is up 7% MoM, but still 14% below the average 2008 monthly output of 1.63 mln mt, and 18% below the average 2007 monthly reading of 1.72 mln mt.

Lvivska Brovarnia, a Ukrainian beer producer affiliated with Carlsberg Group Ukraine (Slavutych), increased its beer output by 43.9% YoY to 4.6 mln dal in January-April, 2009. In 2008, the company increased its beer output by 9% to 16.1 mln dal.

According to a press release, Ukraine’s largest passenger vechilcle producer, UkrAvto [AVTO UZ, N/R], which includes the ZAZ car assembly plant, recorded EBITDA USD 33 mln and pre tax profit at level of USD 10.4 mln in 1Q09.

Ukrainian News reported that Zaporizhstal [ZPST UZ, U/R] is proceeding with its large-scale CapEx program. It was revealed that the construction of sinter and oxygen converter shops has a budget of USD 1.3 bln (earlier estimates were USD 1.7-2.0 bln). The company had already paid EUR 40 mln (supposedly, to Siemens-VAI) for the preparation of the project’s technical documentation.

The State Property Commission has once again postponed the privatisation auctions for Prykarpattyaoblenergo [PREN UZ, BUY] and Sumyoblenergo from May 29 to June 5 due to the lack of applications. The SPF continues postponing the privatisation auction by one week each time there are no applications for the current offer.

The National Energy Regulatory Commission (NERC) decreased the power transmission and supply tariffs for electricity distributing companies that work under Ukraine’s regulated tariff.