Sberbank CIB and R.G.I. International Limited (RGI) have signed a loan agreement to finance the second phase of the construction of RGI’s flagship 1.35 million sqm Microgorod “V Lesu” residential community development. The loan agreement amounts to RUB 5.8 billion ($160 million).
The loan is for a maximum of 44 months at a fixed rate of 11.8 percent interest per annum. A portion of proceeds from presales must, each month, be applied to repay the loan with the outstanding balance repayable in four equal tranches commencing in the 26th month after drawdown and quarterly thereafter. Interest is payable quarterly over the life of the loan.
As announced in RGI’s results on Monday 24 March 2014, the Microgorod “V Lesu” development is progressing to schedule and the first tenants are moving into their apartments during the current quarter.
Commenting, Chief Executive of RGI Andrey Nesterenko said: “We are pleased to have completed this financing on better terms than we had for Phase 1 of Microgorod “V Lesu” This loan commitment ensures that we will be able to push ahead with construction at full pace.”
Natalya Chibrikova, Head of Real Estate Unit of the Client Management Department at Sberbank CIB, Managing Director, commented: “We are ready to continue offering such a reliable partner as RGI beneficial lending conditions and continue helping them meet their ambitious goals. We are proud that by providing financing for the second stage of this large-scale project, we are also encouraging the development of social infrastructure by supporting the construction of a kindergarten and school in the Moscow Region.”