This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 

28 June 2019

Arricano Real Estate Plc ("Arricano" or the "Company")

New Loan Facility and Loan Prepayment

 

New Loan Facility

Arricano (AIM: ARO) announces that on 27 June 2019 its subsidiary PrJSC Ukrpangroup ("UPG"), which operates the Sun Gallery Shopping and Entertainment Centre ("SEC"), located in Kryvyi Rih, Dnipropetrovsk Region, Ukraine, entered into a facility agreement to secure a loan of USD 12,000,000  from JSC "Taskombank" ("New Loan").   

The New Loan is repayable on the expiry of 60 months and incurs interest at 10.75% per annum for the first 18 months and thereafter at 12.00% per annum. The Directors intend that it will be used partially to repay another bank loan, towards financing construction of the Lukynavika SEC in the Shevchenkivskyi district of Kyiv, and for general corporate and working capital purposes.

The loan is secured by a mortgage over the UPG's SEC, by a pledge over shares of the Group in UPG and within 19 months after the first drawdown by a guarantee to be granted by Arricano.

Loan Prepayment

Arricano also announces that UPG has made an early repayment of USD 4.7 million of an existing loan from the EBRD which was otherwise repayable in September 2020 and incurred floating interest rate USD Libor 3m +8.0%.

Mykhailo Merkulov, CEO of Arricano, said: "The Lukyanivka construction project is currently one of the key priorities for Arricano. We believe that this centre will significantly enhance the Arricano property portfolio by introducing to Ukraine the new mixed-use concept. The centre will incorporate a number of distinctive attributes, including innovative architectural solutions and socializing opportunities for guests."

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