Daily monitor

Government-owned monopoly Naftogaz announced terms of restructurization. Bondholders were offered to exchange securities at new Eurobonds with 9,5% coupon, maturity at September 2014 supported by government guarantees.

Government-owned Ukreximbank successfully redeemed USD 250 mln Eurobonds.

International rating agency Fitch Ratings downgraded the individual ratings of UkrSibbank, UkrSotsBank (USCB: BUY) and the bank "Forum" (FORM: BUY) from "D/E" to "E".

Today, the 23d of September, a cabinet ministry will hold a meeting to consider a resolution implementing an alternative plan for reimbursing companies for VAT from the Agrarian Fund. VAT-repayment is a long-standing problem for exporting companies in Ukraine.

Prime-minister Iulia Timoshenko initiates a reduction in the price of natural gas for beet-sugar producers of 16,98%, or UAH 450, down to UAH 2200 per thousand cubic meters. Presently gas accounts for 30% of the cost of sugar.

Motor Sich [MSICH UZ, BUY], a large aviation engine producer in Ukraine, signed an agreement with Saratov region administration to create a joint venture in Russia to produce gas turbine power stations and gas-turbine drives for compressor stations .

The Cabinet authorized the Ministry of Finance to provide government guarantees (within the constraints of the 2009 state budget) for the restructuring of Naftogaz' external obligations. According to Ministry of finance, the term of repayment of the restructured debt should be close to 5 years.

The National Electricity Regulatory Commission (NERC) has increased the expected wholesale electricity price in October by 0.8% in comparison with September's rate of 413 UAH per MWh.

The biggest Ukrainian poultry meat producer “Myronivsky Hliboproduct” [MHPC LI, BUY] confirms its plan for poultry output for FY2009 at 285 thsd t, which is 26,7% higher in comparison with 2008 (+60 thsd t), MHP's (MHPC LI, N/R) CEO Yuriy Kosyuk announced at a press-conference for analysts. According to his statement, output will be up to 335 thsd tons (about 50% of the market) by the end of 2010.

Kryukiv Railcar [KVBZ UZ, U/R] agreed with Ukrzheldortrans to supply 250 freight cars to Ukrzaliznitsya (UZ) in 2009. This deal was concluded on the basis of a loan in the amount of USD 62 mln. from EBRD to purchase the new freight railcars. The size of the loan is equal to approximately to 1400 freight railcars.