Citycon has today signed a 50 million unsecured floating rate term loan facility with Pohjola Bank plc. The loan will mature in five years.
The new term loan will strengthen the company's available liquidity and provides means to finance Citycon's growth with the help of long term financing. The proceeds from the credit facility will be used to finance strategic investments such as shopping center redevelopment projects and refinancing of maturing debt.
"The facility was arranged successfully, demonstrating Citycon's ability to finance its growth as planned in cooperation with our relationship banks. The total fixed financing cost for five years after an interest rate swap was below 4%, and clearly below the last reported weighted average interest rate of Citycon," comments Executive Vice President and CFO Eero Sihvonen.