PIK announces improved creditor terms

PIK announces improved creditor terms

Moscow, October 15, 2013 - PIK Group is pleased to announce that it has agreed improved terms with its main creditor banks, including Sberbank, resulting the average interest rate payable on its bank debt reducing by between 0.8% to 1.0%. As a result, the average cost of the debt will be reduced to 11.35% per annum.

As part of its deleveraging strategy, the Group has sought to optimize its credit portfolio and the reduction secured is evidence of our stable long-term relationship with our creditor banks. These improved terms have been agreed with the participation of the corporate and investment banking arm of Sberbank, Sberbank CIB.

President of PIK Group Pavel Poselenov commented: "PIK's improved operational performance and our successful share offering in June 2013 have enabled us to significantly reduce Group debt during the year. This trend not only adds value to the company, but also serves as an indicator of our sustainability."

In 1H13 loans and borrowings decreased by RUB7.1billion to RUB36.1billion.

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About PIK-Group

PIK-Group is a leading Russian real estate developer, focusing on large-scale residential projects within the Moscow Metropolitan Area and selected Russian regions. Since its foundation in 1994, PIK-Group has become a market leader in mass market residential property sector completing over 200 000 apartments of affordable housing across the country. The Group has a substantial diversified land bank of net selling area of 6.5 million square meters and a dedicated professional team with over 11,000 employees. Given its brand recognition and the scale of its operations, in 2008 the Russian Government included PIK on the list of the nation's strategically important companies. For more information please visit: http://www.pik-group.com