26 Jul 2010 07:00
26 July 2010
AFI DEVELOPMENT PLC
EXTENSION OF VTB CREDIT FACILITY
AFI Development PLC ("AFI Development" or the "Company"), a leading real estate company focused on developing property in Russia and the CIS, announces today that it has reached an agreement with VTB Bank on the extension of the Mall of Russia credit facility agreement between the Company and VTB Bank dated 28 August 2008 (the "Credit Facility") and on the improvement of its terms.
The Company has entered into an addendum to the Credit Facility, under which the repayment term has been extended by two years to August 2013 and the interest rate has been lowered from 16% to 13.25% per annum in Rouble terms.
The facility, for the total amount of RUB 8,448 million, has been used to finance the construction of the Company's Mall of Russia project. As at 30 June 2010, a total of RUB 6,378 million has been drawn down under the Credit Facility.
Commenting, Alexander Khaldey, Director of AFI Development, said:
"We are pleased to have successfully negotiated an extension to our credit facility with VTB Bank on improved terms and feel that this agreement clearly demonstrates the confidence among Russia's leading banking institutions in our Mall of Russia development, which is due to open during the first week of December 2010. At the same time, the improvement in financing terms for this project will have a positive impact on our cash flow and finance expenses going forward."
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For further information, please contact:
AFI Development
Natalia Ivanova +7 495 796 9988
Igor Solomon
Citigate Dewe Rogerson, London +44 20 7638 9571
David Westover
Sandra Novakov
Lucie Holloway
About AFI Development
AFI Development is one of the leading real estate development companies operating in Russia. Established in 2001 AFI Development is a publicly traded subsidiary of Africa Israel Investments Ltd. Since 1934 Africa Israel Investment Ltd. has been an international investment holding with a unique 70-year experience in real estate development all over the world, including Europe and the United States.
In May of 2007 AFI Development was successfully admitted to the Main Market of the London Stock Exchange. Through its IPO the company raised a total of approximately US$1.4 billion. In addition to this listing of Global Depositary Receipts, each of which represents one A ordinary share, 523,847,027 of B ordinary shares in the Company were issued and admitted to a premium listing on the Official List of the UK Listing Authority and to trading on the main market of the London Stock Exchange on 5 July 2010.
The Company delivers shareholder value through a commitment to innovation and continuous project development, coupled with the highest standards of design, construction, and quality and customer service.
AFI Development focuses on developing and redeveloping high quality commercial and residential real estate assets in Moscow, the Moscow Regions and other major Russian cities such as St. Petersburg, Volgograd, Kislovodsk. AFI Development has strong track record of consistent growth over recent years and today the Company's existing portfolio has 30 development projects in 15 locations throughout Russia and Ukraine. Comprising commercial projects focused on offices, shopping centers, hotels and mixed-use properties, and residential projects, AFI Development's strategy is to sell the residential properties it develops and to either lease the commercial properties or sell them for a favorable return.
AFI Development is a leading force in urban regeneration, breathing new life into city squares and neighbourhoods and transforming congested and underdeveloped areas into thriving new communities. The Company's long-term, large-scale regeneration and city infrastructure projects establish the necessary groundwork for the successful launch of commercial and residential properties, providing what the Company believes to be a strong base for future growth.
AFRB.L (AFRB)