Troubled Russian property developer PIK Group has reached agreement with Sberbank, Russia's largest state-owned lender, on a EUR 338 mln financing facility to fund new projects. The new loan is conditional on the developer servicing its existing debt of EUR 318 mln, Sberbank's chairman German Gref told newspaper The Moscow Times.
Troubled Russian property developer PIK Group has reached agreement with Sberbank, Russia's largest state-owned lender, on a EUR 338 mln financing facility to fund new projects. The new loan is conditional on the developer servicing its existing debt of EUR 318 mln, Sberbank's chairman German Gref told newspaper The Moscow Times.
'The decision has been made, we will restructure the company's debt,' Gref told the paper. He added: 'We are ready [to provide financing] if the company will successfully service its obligations, finance new projects under state guarantee and use its construction equipment as collateral.'
The company already owes EUR 318 mln to Sberbank, of which EUR 45 mln has accumulated overdue interest, Gref said. Last week, the chairman of Vnesheconombank (VEB) also announced problems in getting back interest on EUR 178 mln of loans provided last autumn to PIK. The London-listed developer is also reportedly overdue on a number of loans with other banks including international lenders Morgan Stanley and Nomura.
