Daily monitor

Kernel [KER PW, BUY], a Ukrainian bulk oil and grain trader, obtained a USD 17 mln loan from an undisclosed Ukrainian bank with a western mother structure. The funds will be spent to refinance a USD 45 mln loan obtained in September 2008. The exact financial conditions are not announced.

Kyiv Metro has stopped using wagons which were produced by Kryukiv Railcar [KVBZ UZ, U/R], according to the metro’s press service. Kyiv Metro has stopped using wagons which were produced by Kryukiv Railcar [KVBZ UZ, U/R], according to the metro’s press service. This decision was based on a problem with the air conditioning system in the wagons.

Alfa Bank reached an agreement with bondholders about the restructuring of three issues totalling USD 1.045 bln and maturing in 2009, 2010, 2011. Already, 21% of the 2009 and 2011 issues and 15% of the 2010 issue have been redeemed. The remaining 800 USD mln of debt will be exchanged for new Eurobonds maturing in 2012, with a quarterly coupon and 13% as the annual coupon rate. According to Alfa Bank, 80% of bondholders agreed to the restructuring.

The US Department of Agriculture increased its forecast for Ukraine’s harvest by 0.7 mln mt of grain. Moreover, Ukraine’s grain exports are forecasted to increase by 1.5mln mt of grain based on increased harvest estimations and a decrease in domestic consumption.

Kryukiv Railcar [KVBZ UZ, U/R] decreased its volume of railcar production by 77%YoY to 873 railcars in the first half of the 2009, according to a company press release. Compared with the second half of 2008, KVBZ’s production dropped by 67%. According to the company, the production drop is associated with low demand for railcars by customers across the CIS.

According to a note from the State Statistics Committee of Ukraine, industrial output grew 3.1% MoM in June (1.3% MoM growth in May). Therefore, industrial output has fallen 27.5% YoY in June (31.8% YoY decline in May) and 31.1% YoY in January-June (31.9% YoY in January-May).

Ukrproduct [UKR LN, N/R], a London AIM-listed Ukrainian dairy producer, announced that it acquired 1.8 mln of its shares at GBp 12 per share. The shares will be held as treasury shares. As result, the company holds a total of 1.8 mln shares as treasury shares and 41.1 mln shares remain as free float.

According to the bank’s press service, Cargill has had a court arrest the correspondent accounts of Finance and Credit Bank in American Express Bank, Citibank, The Bank of New York Mellon and Deutsche Bank Trust Company Americas. Cargill claims that Finance and Credit Bank has failed to repay Cargill USD 44.4 mln in debt, bank confirms.

The auction for 99.5% of Odesa Portside Plant has been officially announced to take place on September 29, 2009. The initial price will be set at UAH 4 bln (USD 520 mln), and the auction step will amount to UAH 50 mln (USD 6.5 mln).

Bogdan Automobile Plant [LUAZ UZ, U/R] decreased production output by 81.4%YoY to 7684 vehicles in 1H09. Plant operations had stood down beginning in early April 2009 due to the significant number of automobiles ready for sale in the plant’s warehouse and the lack of demand for new cars in Ukraine.