X5 Secures Ruble Credit Commitment from Sberbank to Refinance US $1.1 billion Syndicated Loan
30 Nov 2009
Moscow, 30 November 2009 - X5 Retail Group N.V. (“Company”), Russia’s largest retailer in terms of sales (LSE ticker: “FIVE”), today announced that X5 and Sberbank have reached an agreement on a "forward-start" committed credit line for refinancing of X5’s US $1.1 billion syndicated loan with December 2010 maturity.
Sberbank’s facility takes the form of a 5-year ruble-denominated committed credit line of up to US $1.1 billion in RUR equivalent (based on the exchange rate of the Central Bank of Russia as at draw-down date). The credit line can be utilized in several tranches with varying maturities. Interest rate will be determined as a spread of 400 to 650 basis points over the 3-month MosPrime rate, depending on the maturity of each particular tranche. X5 plans to begin drawing on the facility in the fourth quarter of 2010, while the line is fully committed until then.
Lev Khasis, X5 Retail Group CEO, commented:
"This is the first ‘forward start’ credit facility of such size in Russia. For X5, it secures a means for refinancing our syndicated loan a year before we need it. This marks another important step in the growing partnership between X5 and Sberbank, which already includes a range of financial services and collaborative projects".
Evgeny Kornilov, X5 Group CFO, added:
“This long-term ruble credit facility further strengthens our financial position and helps us to minimize dollar exposure and improve debt maturity profile. This is good news for X5’s shareholders, reducing uncertainty and increasing our flexibility in defining our strategic goals and executing investment plans.”
|
