Ukrproduct Regulatory News (UKR)

07 February 2018

Ukrproduct Group Ltd

("Ukrproduct" or the "Company")

Loan agreement with PJSC "CreditWest Bank"

Proposed refinancing of OTP Bank Loan

Ukrproduct Group Limited (AIM: UKR), one of the leading Ukrainian producers and distributors of branded dairy foods and beverages (kvass), announces that on 05 February 2018 it entered into an agreement for a new loan facility with PJSC "CreditWest Bank" (the "New Loan Agreement").

The New Loan Agreement

Under the terms of the New Loan Agreement the Company can draw down up to UAH 65 million for refinancing purposes (to repay the OTP Bank Loan) as well as for financing working capital. All amounts drawn down by the Company under the New Loan Agreement, together with interest accrued, will be due for repayment on 5 February 2021. The interest rate under the New Loan Agreement is fixed at 18% per annum. Any draw down under the facility will be secured on appropriate collateral provided by the Company (real estate, equipment etc).

Repayment of OTP Bank Loan

The Company intends to draw down UAH 32.3 million in the short term under the New Loan Agreement to repay all amounts outstanding under the OTP Bank Loan. The Board has taken the decision to refinance the OTP Bank Loan on the basis that the terms and conditions of the New Loan Agreement are more competitive than the existing OTP Bank Loan. A further announcement will follow in due course.

In addition, the Board expects that other amounts drawn down under the New Loan Agreement will be used for general working capital purposes.

About PJSC "CREDITWEST BANK"

Public Joint Stock Company "WEST FINANCE AND CREDIT BANK" (hereinafter - PJSC "CreditWest Bank") was established on 4 October 2006. The bank is fully owned by Turkish conglomerate, ALTINBAŞ HOLDING ANONİM ŞIRKETİ, which operates in the energy, finance, jewelry, logistics and education sectors.

The Bank has been rated by the international rating agency, JCR Eurasia Rating at 'AA-(Ukr)' on the Long Term National Scale with 'Positive' outlook and at 'A-1+ (Ukr)' on the Short Term National Scale, which denote investment grade credit ratings. PJSC "CREDITWEST BANK" has also been rated by the national rating agency IBI-Rating  with a long-term credit rating of 'uaAA' grade (under the National Rating Scale) with 'Positive' outlook and the Bank Deposit Reliability Rating at level "5+" (excellent reliability).

For further information contact:

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").