2nd Jun 2008 07:00
RAVEN RUSSIA LIMITED
("Raven Russia", the "Company")
Kiev Project Finance Facility Signed
Raven Russia, the Guernsey-registered, AIM-listed property investment group, focused on warehouses in Russia and Ukraine, announces that it has a signed a $53.2m loan facility agreement with the International Finance Corporation (IFC), part of the World Bank Group. The facility will be used to finance construction of 85,000 sqm of new warehousing and the refurbishment of 16,000 sqm of existing warehouse facilities as part of the first phase of the Kalyinivka Logistic JV project in Kiev, Ukraine.
The facility comprises IFC's committed funds of $28.5m with the remaining $24.7m currently being syndicated. The facility has a term of 7 years with a margin over US LIBOR of below 5%. This is Raven Russia's first project facility with IFC and marks the beginning of a relationship that both parties wish to develop further as Raven Russia continues its geographic expansion across the Russian Federation.
Together with previously announced construction finance commitments, total construction finance available to the group is $301m at an average weighted total interest cost to the group of 7.35%, based on current cost of funds.
Raven Russia has existing investment finance drawn of US$179 million at an average weighted cost to the Group of 6.6%.
Anton Bilton, Chairman of Raven Mount, the Property Adviser to Raven Russia said: 'This demonstrates Raven Russia's ability to expand into former CIS countries and its continuing success in raising finance for quality projects at competitive rates.'
Richard Jewson, Chairman of Raven Russia added: 'This is Raven Russia's first project with IFC and we are keen to develop a strong relationship as we expand into the Ukraine and the Russian regional cities.'
Dimitris Tsitsiragos, Director for Global Manufacturing and Services, International Finance Corporation said: 'This agreement with Raven Russia represents an important and strategic partnership for us. Furthermore, this is another step in our relationship with Asnova, an existing IFC client and a local Ukrainian company, that is expanding its warehousing capacity in Ukraine, thus improving local supply chains and enabling the development of the private sector.'
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Charles Cook/Mike Davies Tel: +44 (0)20 7861 3232
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Notes to Editors
Raven Russia is a leading UK listed property investment and development company focussed on warehouses in Russia. Since its inception in July 2005 it has invested in a pipeline of projects with an estimated end value of $2.4 billion in Russia and Ukraine. Raven Russia has an equity base of over $900 million and has appointed RRPM a subsidiary of Raven Mount plc as its Property Adviser. See www.ravenrussia.com
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC's vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org.
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