AFI Development plc (LSE:AFID), the Russian development arm of Lev Leviev-controlled Africa-Israel Investments Ltd. (TASE:AFIL) has secured a 21 billion Ruble ($626.5 million) credit facility from Russia's VTB Bank (RTS; LSE: VTBR).
The loan for AFI Development subsidiary Bellgate Construction Ltd. can be drawn on the credit in five installments, each for a designated purpose. Most of the funds will be used to refinance current loans from VTB Bank. The balance of the funds will be used to refinance construction costs of AFIMALL City's parking garage, and to pay outstanding payments for it.
The ruble-denominated loans will bear 9.5% annual interest and the dollar-denominated loans will bear three-month LIBOR + 6.7% annual interest. Bellgate will repay the interest in quarterly installments during the loan period, and will repay the principle in $6.5 million quarterly payments in 2014-17, before repaying the outstanding balance in April 2018.
AFI Development's share price rose 0.6% at the opening in London to $0.48, giving a market cap of £343 million. Africa-Israel's share price fell 0.3% in morning trading on the TASE to NIS 11.69, giving a market cap of NIS 1.5 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on June 27, 2012
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