Update on Credit Facillities with Sberbank

Update on Credit Facilities with Sberbank of the Russian Federation

London, March 20, 2012 PIK Group, a leading Russian real estate developer, today announces that its Board of Directors approved certain amendments to its Sberbank credit facilities.

As of early March 2012, the Group's total debt outstanding amounted to RUB45.1bn (equivalent to approx. US$1.5bn), of which Sberbank debt exposure onto PIK amounted to RUB28.6bn (equivalent to about 60% of the total debt).

According to the initial debt repayment schedule under the Sberbank credit facilities, RUB10.4bn was due for debt repayment during 2012 by equal quarterly installments.

Following recent arrangements between the counterparties, Sberbank has agreed to amend the repayment schedule, reducing amounts due in 2012 down to RUB1.8bn. The difference of RUB8.6bn is proportionally extended to the period 2013-2014.

The interest rate payable remains unchanged together with underlying collateral base, which is constituted of the Group's assets and the government guarantees issued by the Ministry of Finance of the Russian Federation.

In addition to the above, financial covenants under the above credit facilities are revisited by the bank as well to accommodate the Group needs.  

-ENDS-

Enquiries:

PIK Group

Investors Tel: +7 495 505 97 33 ext. 1358 / 1315

Viktor Szalkay

Media

Natalia Ivanova Tel: +7 495 505 97 33 ext. 1010 /1014

Citigate Dewe Rogerson Tel: +44 20 7638 9571

Tom Baldock

Priscilla Garcia