* Co has around $65 million funds available - VP
* Will use to cover expenses, not construction
* $30 million debts to service; no major repayment for 2 yrs
* Looking for financing on six other projects
* Sees "business as usual" in 2 years
By Sabina Zawadzki
KIEV, Nov 7 (Reuters) - Ukrainian developer KDD Group still has half its IPO funds available to service debt at a time when construction has virtually ground to a halt and refinancing is almost impossible, Vice President Petro Radchuk said.
KDD, together with fellow Ukrainian developer XXI Century, has been a big loser on London's AIM market as investors rushed out of emerging markets and sectors especially sensitive to recession and the global credit crunch.
While XXI Century warned last week, however, that there was a possible risk of default on some of its financial commitments, KDD said it was confident in its financial position.
KDD listed last December, raising about $130 million. Its shares have since lost 96 percent of their value, trading at about 7.5 pence each. XXI Century shares have lost 97.7 percent.
"We were the last ones to catch the (IPO) train. We expected the crisis so we didn't spend, we still have approximately half of the IPO proceeds sitting in cash on bank deposit," Radchuk told Reuters in an interview.
"We do not want to use this equity, this $65 million, for any construction because it is not enough. So we will use it for any expenses during these tough times to cover interest payments and to acquire a few nice projects."
Radchuk said the company now has about $30 million in debts to service, and no major repayment for at least the next two years, by which time he expects the situation in debt markets to have improved.
MOVING SLOWLY
KDD own nine projects, three of which, two massive office centres and a large residential complex, are under development.
One of the office complexes had promised to be the tallest building in Ukraine, with a total area of 215,368 square metres -- but KDD is just short of full financing and will build as high as its $160 million credit line will allow.
The second is a World Trade Centre, under the WTC umbrella, for which KDD is looking for financing after beginning basic construction. Both projects are due to be completed by 2010.
For the other six projects, the company is tentatively looking for financing and building permits from the authorities.
"We are slowly moving on these projects but we are not in a rush, unlike the end of last year when we were desperate to get all our permits," Radchuk said.
He said after an extra 95,000 square metres of office space was put on the market in Kiev in the first half of this year, he expects "close to zero" supply until the end of next year.
"We expect liquidity to maybe appear again on the market sometime in a year's times. So, business as usual in two years," he said.
According to its interim results, the company earned $70.61 million in net profit in the first half. It gave no comparative figure. In 2007, it earned $105.4 million in net profits. The market value of its projects stoof at $1.074 billion. (Editing by Simon Jessop)