Since the beginning of 2019, Arricano Real Estate PLC (hereinafter – "Arricano"), the leading developer of shopping malls in Ukraine with European investments, acquired $ 40 million of credit funds for the development of the company and the portfolio of objects, as well as for refinancing.
Mikhail Merkulov, CEO Arricano, said: "The company is proud of stable and reliable working relationships with financial institutions, JSC "State Savings Bank of Ukraine", "European Bank for Reconstruction and Development" JSC "TASKOMBANK", and JSC "Raiffeisen Bank Aval". We are pleased to know that the largest financial institutions and banks are confident in the reliability of cooperation with Arricano and are ready to finance quality projects that affect the modernization of the industry. Large-scale transactions between developers and banks this year is a bright signal for international investors about the development and prospects in the commercial real estate sector of Ukraine."
For 7 months of the current year Arricano signed four loan agreements to the amount of $ 5.15 million, $ 4.0 million, $ 12.0 million, and $ 19.0 million.
Lauri Reinberg, Financial Director of the company, said: "Ensuring the financing is one of the priorities of the development company. Especially in a market like Ukraine. After all, external bank financing is a competitive advantage of the business, which demonstrates confidence in the company and belief in its strategic development."
On February 20, 2019, the Ukrainian subsidiary of Arricano, LLC "Pryzma Alfa", entered into a loan agreement with JSC "Raiffeisen Bank Aval" for UAH 140 million (approx. $ 5.15 million) with repayment date until 31 December 2023. The loan is secured by a mortgage of the City Mall, owned by the Arricano group, a pledge of property rights under lease agreements concluded with the tenants of the City Mall, and Arricano's guarantee. On June 14, 2019, Arricano's subsidiary, PrJSC "Livoberezhzhiainvest", signed a supplemental agreement to the loan agreement with the consortium of banks of JSC "TASKOMBANK" and JSC "Universal Bank" to increase the credit limit by $ 4 million to $ 20 million.
On June 27, 2019 PrJSC "Ukrpangroup" (hereinafter "UPG"), a subsidiary of Arricano, entered into a loan agreement with a limit of $ 12 million from JSC "TASKOMBANK." The loan term is 60 months. The loan is secured by a mortgage of "Sum Gallery" shopping mall, a pledge of shares of UPG and Arricano's guarantee.
On July 25, 2019, the subsidiary of Arricano, LLC "Comfort Market Luks" (hereinafter – "KML"), managing the shopping mall "Prospekt", signed a credit line agreement with the Joint-Stock Company "State Savings Bank of Ukraine" (hereinafter – "Oshchadbank") with a limit of $ 19 million, which consists of the first tranche of up to $ 6.8 million and the second tranche of up to $ 12.2 million for 60 months for the first tranche and 84 months for the second tranche. The loan agreement with Oshchadbank is secured by a mortgage of Prospekt shopping mall, a pledge of corporate rights of KML and other additional collateral provided by KML and Arricano.
Ihor Baranov, Director of Capital Markets Arricano, says: "We strive to maximize market opportunities and attract debt financing, according to the company's financial plan for 2019, in order to maintain the rapid pace of development and Arricano's ambitious goals."