Raven Russia (`Raven Russia` or `the Company`) (AIM: RUS), the Guernsey-registered, AIM-listed property investment group, focused on warehouses in Russia, announced that it has signed a $170m construction and term loan facility agreement with VTB Bank Europe plc (VTBE).
The senior debt facility with its Megalogix warehouse joint venture will be used to finance the 200,000sqm Rostov logistics project in southwest Russia.
The facility comprises VTBE-committed funds of $100m to fund 75% loan to cost for the first phase of the Rostov project, and an additional option of an uncommitted $70m to fund 75% loan to cost for the second phase of the project. The facility is for 7 years (including the construction period) and, based on current Libor rates, is at an overall interest cost to the JV of below 7%.
The VTBE facility comprises part of the overall $213m of construction finance that the Company indicated it was finalizing when it announced its final results on the 10th March. Despite the global credit crisis, Raven Russia Property Management Ltd remains confident of announcing further senior debt commitments shortly in order to achieve this target.
Anton Bilton, Chairman of Raven Russia Property Management Ltd said "In the current global environment this is excellent news and reflects the continued attraction of our strategy and Russia as a business arena. It also reinforces the merits of the emerging markets against traditional markets that are declining."
Steve Thunem, Head of Global Markets of VTB Bank Europe said: "Only the strongest projects present viable financing opportunities due to the difficult conditions prevailing in the financial markets. We believe that the quality of this project and the professional approach of Raven Russia will ensure that this is an attractive project for the international banking market."
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