MirLand, one of Russia's leading residential and commercial property developers, announces the successful conclusion of a new non-revolving US $50 million (approx. 38.6 million) refinancing loan agreement with SberBank of Russia ('SberBank' or the 'Bank') for two of its Moscow office investment assets.
Open Joint Stock Company Machine-Building & Hydraulics and Limited Liability Company Hydromashservice, both wholly owned subsidiaries of the Company, ('the subsidiaries') have entered into the US $50 million loan agreement for a seven-year term, at fixed interest of 9.5%, payable quarterly. The loan refinances the subsidiaries' existing debt of US $24 million (approx. 18.5 million) and additional funds will be used for the Company's working capital.
The Loan is secured by various mortgages, charges, pledges and other customary security interests for the benefit of the Bank and entered into by both the subsidiaries and the Company. The Loan will be repaid within seven years through regular quarterly payments and a final balloon payment of 50% at the end of the term.
Commenting on the Loan, MirLand's Chairman Nigel Wright said:
"This additional loan agreement is further evidence of the Company's ability to source financing domestically on attractive terms, in spite of the broader challenges in the market and the widespread scarcity of debt.
"We continue to make good progress on projects across our portfolio, and look forward to maintaining this positive momentum with the start of construction and the sales campaign for phase two of the successful Triumph Park, mixed use development."
Source: FTI Consulting