RAV.L Regulatory News (RAV)

5 Oct 2009 07:00



RAVEN RUSSIA LIMITED 

("Raven Russia" or the "Group")

Finance Facilities

Raven Russia confirms it has made early repayment of the outstanding balance of a $60m construction loan secured on the Group's Rostov warehouse project. The security was held by VTB Capital PLC.

The project is the first grade A warehouse to be constructed in the city of Rostov-on-Don in south west Russia. It comprises 100,000 sqm of which 58% has recently been let to Auchan, X5, and Avalon Logistics following the asset's completion.

The 2 year loan of $60m was provided in September 2008 at a margin of 11% over US Libor with a repayment schedule of $20m on 25 September 2008 and $40m on 25 September 2010. Early repayment of the second tranche has been funded with a £25m bridging loan from RBS International on a 12 month term, at an initial margin of 2.95% above UK Libor. No penalties or prepayment fees have been incurred on the early repayment.

In parallel, a $40m investment loan facility has been signed with the International Finance Corporation ("IFC"), to be secured on the Rostov warehouse. This is a long term facility of 9 years at an overall margin of 8% above US Libor and is fully approved by the IFC Board. An initial $30m is due to be drawn before the end of the calendar year and will be used to repay the majority of the bridging loan. This represents IFCs third facility with the Group. 

On drawing the IFC facility, the Group's total cost of debt will reduce from 8.3% to 7.5% and total Group debt will reduce from $463m to $449m.

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