Stock Exchange Announcement
12 November 2010
RomReal Extends Alpha Bank Loan for 2 Years
RomReal is pleased to announce that the Company has received a written confirmation from Alpha Bank that an extension of the loan facility of EUR 11.6 million has been approved for a period of 2 years with maturity on 30.11.2012. Following this the final loan documentation will now be put in place.
The difference between the size of this agreed facility and the size of the original loan of EUR 13.7 million is the EUR 2.1 million repayment that the Company made after selling the "Bus Station" plot in October 2010.
Kay Thorkildsen RomReal CEO said:
"We are very pleased that we have obtained a 2 year extension and with the faith that Alpha Bank has shown in RomReal's operation. With the cash balances of EUR 2.57 million at the end of Q3 and the 2 year extension of the loan we feel that the Company is in a sound financial position for the future. The Company will now prioritize further divestments of plots in the land bank, and with the 2 year extension of the loan we now have significantly more flexibility timing wise to achieve the best possible values for our high quality land bank."