28th Aug 2008 07:00
Raven Russia Limited
('Raven Russia' or the 'Group')
Novosibirsk Project Finance Facility Signed
Raven Russia, the Guernsey-registered, AIM-listed property investment group, focussing on warehouses in Russia and Ukraine, announces that its Megalogix warehouse joint venture has signed a $95 million loan facility agreement with the International Finance Corporation (IFC), part of the World Bank Group. This new facility will be used to finance the joint venture's logistics project in Novosibirsk, the largest city in Siberia and the third largest in Russia after Moscow and St Petersburg. The project will have a lettable area of approximately 121,000 square metres and construction is well advanced with completion targeted for the end of this year.
The facility comprises the IFC's committed funds of $40 million with the remaining $55 million to be syndicated. The facility has a term of 7 years with an initial margin over US LIBOR of less than 5.50%, reducing by 100 basis points on completion of construction.
This is the second facility arranged with the IFC, following the Kalyinivka Kiev project finance facility announced 2 June 2008.
Together with the previously announced construction finance commitments, including debt acquired with existing projects, total construction finance available to the Group is $374 million at an average weighted total interest cost to the Group of 9.31% including fees, based on current US LIBOR.
Raven Russia has existing investment finance facilities of $267.5 million at an average weighted cost to the Group of 6.68% including fees.
Anton Bilton, Chairman of Raven Mount plc, the Property Adviser to Raven Russia said: "Through the Megalogix joint venture, Raven Russia now has a growing presence in the key regional cities in the Russian Federation and with strategic partners such as the IFC, Megalogix is demonstrating its ability to deliver quality product to these cities."
Richard Jewson, Chairman of Raven Russia added: "This is Raven Russia's second project with the IFC and demonstrates the strong relationship we have developed. We look forward to working on more projects together as Megalogix expands."
Dimitris Tsitsiragos, Director for Global Manufacturing and Services, IFC said: "Business infrastructure, and warehouses in particular, have indisputable importance for the further development of the Russian economy. We are happy to continue our successful cooperation with a reliable and experienced partner like Raven Russia by providing finance to support their ambitious plans to develop a warehouse network in frontier regions of Russia and, through the syndicated part of this financing package, introduce this capital intensive project to the international banks."
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Further enquiries:
Raven Russia Limited
Richard Jewson, Chairman Tel: +44 (0) 1603 757 909
Bell Pottinger Corporate & Financial Tel: +44 (0) 20 7861 3232
Charles Cook
Mike Davies
Zoe Sanders
Numis Securities Limited
Financial Adviser, Nominated Adviser and Joint Broker
Nick Westlake (Nomad) Tel: + 44 (0) 20 7260 1000
Nick Harland
Rupert Krefting
Notes to Editors
Raven Russia
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.
IFC
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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