Daily monitor

The joint stock company Sumy Frunze Machine Building [SMASH UZ, U/R] has successfully produced compressor equipment for Gazprom, for a total value of USD 13 mln.

The First Ukrainian International Bank (FUIB) has reached an agreement with Eurobond holders concerning the restructuring of USD 275 mln worth of Eurobonds. Bondholders agreed to a postponement of the period for the Eurobonds’ redemption from February 16, 2010 to December 31, 2014 and an increase in the coupon rate from 9.75% to 11%.

The Finance and Credit Bank intends to restructure its USD 100 mln Eurobond issue, which matures in January 2010. According to its press release, the Bank is proposing to postpone the repayment of the principal for four years (until January 25, 2014) and increase the coupon rate to 10.5%. Finance and Credit is also ready to immediately redeem 5% of the nominal value of the bonds once bondholders accept the proposed terms.

On December 14, 2009, VAB Bank paid the fifth coupon on its 3-year Eurobonds due in June 2010in the amount of USD 6.3 mln. The coupon is paid semi-annually at the rate of 10.125% per annum.

According to Ukraine’s Deputy Minister of Agrarian Policy, Ivan Demchak, the Ministry is currently considering the possibility of a duty-free import of 300 thsd tonnes of sugar to the Russian market. The Ministry of Agriculture of Russia did not object to importing Ukrainian sugar, but still plans on introducing some restrictions, since only beet sugar should be brought into the country, as opposed to processed raw sugar.

Rodovid Bank (Kyiv), one of the largest banks in Ukraine, has increased its authorized capital from UAH 5.599 bln to UAH 8.409 bln. The objective of the bank’s additional capitalization, and the involvement of the state, is to ensure the feasible payment of the outstanding obligations of Ukrprombank in repaying retail deposits that were earlier transferred to Rodovid Bank in accordance with resolutions taken by the Cabinet of Ministers and the National Bank of Ukraine.

According to the Reuters news agency, Arcelor Mittal may dismiss about 10 thsd workers at its operations around the world in 2010 in order to cut costs by USD 500 mln. However, the Company’s representatives have not yet confirmed the information, though they have stated that this number does not represent the final tally.

According to the press office of Kryukiv Railcar [KVBZ UZ, BUY], the Company produced a total of 532 railcars in November, which is equal to the average 2008 monthly output figure. According to the Company’s production program, the production of another 630 cars is planned in December, which is 18.4% MoM more than in November.

The Ministry of Agrarian Policy has proposed that the Cabinet of Ministers set a minimum price for sugar beet at 291.66 UAH/tonne a minimum for sugar at 4,250 UAH/tonne net VAT for the 2010/2011 marketing year (September 2010 - August 2011). In the current 2009/2010 MY, the Cabinet of Ministers set a minimum price for sugar beet at 214.9 UAH/tonne, while it is 3,125 UAH/tonne for sugar. Quota “A” of sugar supply for the domestic market should increase to 1892 tonnes, from 1850 tonnes in this season.

Ukrros [UROS UZ, U/R], a major Ukrainian sugar producer, has announced plans to sell two sugar mills located in the Kharkiv Region. This move is necessitated by the lack of sugar beet supply for the mills, which stood idle this fall. The Company doesn`t grow sugar beet in the Kharkiv Region, as the sugar beet yield is relatively low in that region. The combined daily capacity of the two mills constitutes some 8,000 tonnes of sugar, which is 26.7% of the Group`s total production capacities of 30,000 tonnes. In addition, the Company also announced that it will be re-launching its bioethanol project, which was previously delayed due to the crisis.