LONDON (Alliance News) - Ukraine-focused retail real estate operator Arricano Real Estate PLC Wednesday said it has agreed two separate loan agreements.
The company said it had agreed an extension to the commercial terms of an existing USD13.1 million loan facility provided by Bytenem Co Ltd to Arricano in May. Arricano said Bytenem will provide the company with an additional USD3 million loan on the same terms as the original facility, enhancing its working capital resources.
The loan is repayable on March 14, 2015 or earlier if agreed by both parties. The loan carries an annual interest rate of 12% and is unsecured.
In a separate deal, LLC Mezokred Holding and Gingerfin Holdings Ltd have entered into a loan agreement whereby Gingerfin will provide Mezokred with a loan of USD7.0 million. Mezokred is a wholly owned subsidiary of Gelida Holding Ltd which is a wholly owned subsidiary of Arricano.
This loan facility will be used by Mezokred for the financing of contracted design works in relation to its Petrovka development project.
Arricano said the loan is repayable in instalments or in one payment by December 31, 2015. The loan carries an annual interest rate of 10% and interest is charged on a monthly basis.
Both Bytenem and Gingerfin are controlled by Hillar Teder, Arricano's majority shareholder and a director at the company.
Arricano Real Estate shares were quoted down 12.2% at USD2.13 Wednesday.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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