GTC said that it may spend at least USD 1bn on projects in Emerging Europe by the end of 2008. GTC should spend the recently raised USD 150m from equity issuance, plus additional debt and its own equity on the projects. This is in line with our projections based on the current pipeline and the new equity issue assuming debt-to-equity of 0.65 on the new projects. The debt-to-equity ratio on the new projects is lower compared with current projects as these are based in Ukraine, Bulgaria and Slovakia, which are riskier countries compared with the C3. We do not expect any significant market reaction to the announcement, nevertheless we reiterate our Buy recommendation on GTC.