OREANDA-NEWS. November 12, 2010. The Kyiv City Administration will settle the Kyivenergo’s tariffs difference in the amount of UAH 500mn, the Company representative announced Nov 11. The Administration plans to take out a short term loan at Ukrainian Export-Import Bank (EXIM)  at 12.5% p.a. interest rate. It plans to sink the debt by  Dec 6.

Millennium Capital sees the news as POSITIVE for KIEN. The Kyiv City Administration owed in excess of UAH 1.2bn to KIEN for consumed heat and electricity as of Oct 2010. With the borrowed funds Kyiv should be able to reduce its debt to KIEN by almost half which is positive for the FCF of the latter.