Moscow, October 15, 2013– PIK Group is pleased to announce that it has agreed improved terms with its main creditor banks, including Sberbank, resulting the average interest rate payable on its bank debt reducing by between 0.8% to 1.0%. As a result, the average cost of the debt will be reduced to 11.35% per annum.
As part of its deleveraging strategy, the Group has sought to optimize its credit portfolio and the reduction secured is evidence of our stable long-term relationship with our creditor banks. These improved terms have been agreed with the participation of the corporate and investment banking arm of Sberbank, Sberbank CIB.
President of PIK Group Pavel Poselenov commented: “PIK’s improved operational performance and our successful share offering in June 2013 have enabled us to significantly reduce Group debt during the year. This trend not only adds value to the company, but also serves as an indicator of our sustainability.”
In 1H13 loans and borrowings decreased by RUB7.1billion to RUB36.1billion.