Yesterday KEGOC reported on the early repayment of the loan to the EBRD in the amount of $ 151.9 mn. This loan was drawn in May 2011 by KEGOC for the realization of the investment project "Reconstruction of 220 kV CCPR -Osakarovka".
Recall that the first tranche of the partial early repayment was held in December 2016. At the end of 2016 the amount of liabilities of this loan amounted to $ 27.4 mn. KEGOC fully repaid the loan on 5 January. We assume that the loan repayment was carried out at the expense of own funds of the Company. At the end of 9M2016 cash of KEGOC amounted T41,2 bn, or $ 122.7 mn. (at the rate of 335.84 tenge / $).
We view the news as neutral. At the same time, we maintain our recommendation "HOLD" for the KEGC KZ shares because KEGOC's total amount of loans is still high ($337.78 mn). Despite the ample supply of liquidity for the timely repayment of debt, we believe that the leverage implies high risk for share price.