AFI Development plc (LSE:AFID), the Russian development arm of Africa-Israel Investments Ltd. (TASE:AFIL), controlled by chairman Lev Leviev, has secured a 4 billion ruble ($134 million) loan from VTB Bank to finance its acquisition of the planned parking garage at the company's AFIMall City in Moscow. The company announced the acquisition of the parking garage in December 2011.
The loan was granted to AFI subsidiary Bellgate Construction Ltd. The terms of the loan are essentially the same as for current loans provided by VTB Bank for the AFIMall City project.
AFI Development is still in talks with VTB Bank for a loan to build the parking garage beneath the mall, as well as talks on VTB Bank's potential purchase of 600 parking spaces in the garage.
AFI Development's share price fell 1.3% by midday on the London Stock Exchange to $0.66, giving a market cap of ₤168 million, and Africa-Israel's share price fell 1.3% by early afternoon on the TASE to NIS 14.14, giving a market cap of NIS 1.7 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on February 22, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012