Almaty – Chagala Group (Chagala or the ‘Company’) is pleased to announce that it has completed negotiations with Al Hilal Islamic Bank Kazakhstan for the provision of up to USD 10 million in new financing and refinancing.
Under the terms of the agreement, a maximum of USD 2.5 million has been provided under a revolving commodity Murabaha for a maximum of three (3) years. The remaining USD 7.5 million has been provided through a non-revolving commodity Murabaha for a five (5) year period from the date of first disbursement. Part of the non-revolving portion of the loan, USD 2,500,000, will be used to retire existing debt held by HSBC Kazakhstan dating back to 2010. Also, USD 5 million will be allocated to new investment projects which are currently under discussion with client companies.
Francisco Parrilla, CEO of the Chagala Group commented that “This refinancing will allow Chagala to continue its growth strategy with increased financial flexibility owing to the more preferable terms and lower rates offered under this agreement. Islamic financing is a relatively new financial product in Kazakhstan and we are proud to be one of the first publicly traded companies to access the benefits it offers”.
Chagala is a service company focused on providing long and short term accommodation solutions to domestic and international oil and gas companies developing Kazakhstan’s largest hydrocarbon discoveries. With the ownership of hotels, serviced apartments, remote site facilities, restaurants and offices in its portfolio, Chagala is well positioned to capitalize on the oil and gas investment being made in Kazakhstan.
For more information:
Francisco Parrilla, Chief Executive Officer
Chagala Group Limited
+ 7 (727) 298 0131