EBRD Loan Facility
Arricano, a leading retail real estate developer and operator in Ukraine, announces that the terms of a six year US$25 million secured loan facility with the European Bank for Reconstruction and Development (the “EBRD”) have been agreed (the “Loan”).
The proceeds of the Loan, the commercial terms of which are broadly in line with those of the Company’s existing loan with the EBRD, will be utilised mainly to finance construction payables for Arricano’s new Shopping and Entertainment Centre (“SEC”) Prospect which is located in Kyiv, Ukraine and to repay US$10 million of an existing loan with PJSC “State Savings Bank of Ukraine” (Oschadbank). The SEC Prospect opened as scheduled in September 2014 and was officially opened on 6 December 2014.
Tetyana Kolesnyk, acting CFO of Arricano Real Estate, noted: “Despite the current unstable economic situation in Ukraine, we were able to conclude an agreement with EBRD, one of the largest international financial institutions. The loan in the amount of 25 million US dollars will be raised as part of the EBRD corporate support program in Ukraine. The negotiation process was largely facilitated by the company’s good history as a borrower and by positive partnership of Arricano and EBRD: in 2008 we were granted a loan allocated for implementation of projects SEC Sun Gallery in Krivoy Rog and SEC South Gallery in Simferopol, the cooperation on which still goes on.”