Citycon Oyj has decided to repay its capital loan 1999 prematurely on 30 June 2005. The loan will be repaid according to the terms and conditions of the loan. Citycon issued on 30 June 1999 a 68 452 486 capital loan to institutional investors. The loan was originally due to mature on 30 June 2009.
The prepayment of the loan will result according to a current estimate in a one time cost of approximately 5.5 million that will be charged fully in the second quarter result. Earlier this week, Citycon has announced the issue of a new capital loan. The amount of the new loan is 70 million and its maturity date is 17 June 2010. After taking into account the above mentioned one time cost the net savings in the financing expenses of Citycon will be approximately 1.5 million over the next four years.