AFI Development Plc, a leading real estate company focused on developing property in Russia and the CIS, has announced that it has reached an agreement with VTB Bank on the extension of the Mall of Russia credit facility agreement between the company and VTB Bank dated August 28, 2008 and on the improvement of its terms.
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AFI Development's Mall of Russia is due to open in December 2010.
The company has entered into an addendum to the Credit Facility, under which the repayment term has been extended by two years to August 2013 and the interest rate has been lowered from 16% to 13.25% per annum in Rouble terms.
The facility, for the total amount of RUB 8,448 million (approx. 215 mln.) has been used to finance the construction of the company's Mall of Russia project. As at June 30, 2010, a total of RUB 6,378 million has been drawn down under the credit facility.
Commenting, Alexander Khaldey, Director of AFI Development, said: "We are pleased to have successfully negotiated an extension to our credit facility with VTB Bank on improved terms and feel that this agreement clearly demonstrates the confidence among Russia's leading banking institutions in our Mall of Russia development, which is due to open during the first week of December 2010. At the same time, the improvement in financing terms for this project will have a positive impact on our cash flow and finance expenses going forward."
Source: AFI Development
The facility, for the total amount of RUB 8,448 million (approx. 215 mln.) has been used to finance the construction of the company's Mall of Russia project. As at June 30, 2010, a total of RUB 6,378 million has been drawn down under the credit facility.
Commenting, Alexander Khaldey, Director of AFI Development, said: "We are pleased to have successfully negotiated an extension to our credit facility with VTB Bank on improved terms and feel that this agreement clearly demonstrates the confidence among Russia's leading banking institutions in our Mall of Russia development, which is due to open during the first week of December 2010. At the same time, the improvement in financing terms for this project will have a positive impact on our cash flow and finance expenses going forward."
Source: AFI Development
