AFI Development Plc announces that it has reached an agreement to restructure its loan agreements with VTB Bank PJSC (“VTB”) in relation to the AFIMALL City project and the Ozerkovskaya III project. It has been agreed that the Company subsidiary Bellgate Constructions Limited (“Bellgate”, the owner of AFIMALL City) signs a new loan facility agreement (“the New Loan”), which will be used to refinance the existing Bellgate loan from VTB and to repay its loan from AFI Development.
Bellgate will receive the New Loan in five tranches, in Euros and in Russian Roubles. The blended interest rate on the New Loan is circa 5.6% (assuming current EUR/RUR exchange rate and current Russian Central Bank key lending rate). The interest and the principal of the New Loan are to be paid quarterly, while the term of the loan is 5 years. After drawdown of all the tranches, Bellgate will have loan obligations in Russian Roubles of a maximum amount of RUR9.6 billion and in Euros in the equivalent of US$360 million.
AFI Development plans to use the funds received by Bellgate to repay the remainder of Ozerkovskaya III loan. Taking into account partial repayment of this loan from proceeds received from disposal of two buildings at Ozerkovskaya III in December 2017, the Ozerkovskaya III loan at VTB will be fully repaid.
The New Loan has additional conditions and securities common for this type of loan agreements on the Russian market. AFI Development Plc will not provide a guarantee for the New Loan.