Press releases – 2010
Loan agreement final
24 Nov 2010
Chagala Group Limited
24 November, 2010
Chagla Group Modifies Existing Loan Agreement
Almaty – Chagala Group (LSE: CHGG)) today announced it has completed negotiations to modify the terms of its existing loan agreement with its principle lenders, HSBC Bank Kazakhstan and Raiffeisen Bank International AG. Under the amended loan agreement, Chagala has decreased its loan facility from USD 53.5 mln to USD 32.5 mln and extended the term of part the loan used to fund the construction of the Ural building in Atyrau (USD 15 mln) by an additional one year.
Tim Abson, CEO of Chagala Group commented that “Chagala has an excellent relationship with its lenders and we are pleased that we were able to successfully complete the loan amendment. In the short term, we will continue to explore and develop several new opportunities which can be funded through our own resources and, project by project financing. We are committed to the long term support of our existing clients and as their plans become clearer we will again focus our efforts on larger developments”.
The loan modification was undertaken in light of delays experienced by the Company’s client base of oil and gas companies, principally the well publicized challenges at the Kashagan oil field in Kazakhstan’s sector of the north Caspian Sea. Amendment of the existing loan agreement also allows the Company to explore and enter into new projects and opportunities previously restricted by the original terms. Management of the Company views this successful effort as a prudent step in managing the finances of the company by reducing fees and associated finance costs.
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. Chagala capitalizes on the oil and gas investment being made in Kazakhstan by owning and operating hotels, guest houses, serviced apartments, remote site facilities, restaurants and offices serving the industry.
For more information:
Tim Abson, Chief Executive
Chagala Group Limited
+7 (727) 298 01 31
Raiffeisen Bank International AG (RBI) regards both Austria, where it is a leading corporate and investment bank, and Central and Eastern Europe (CEE) as its home market. In CEE, RBI operates an extensive network of subsidiary banks, leasing companies and a range of other specialised financial service providers in 17 markets. 56,000 employees service about 15 million customers through around 3,000 business outlets in the region.
RBI is the only Austrian bank with a presence in both the world's financial centres and in Asia, the group's further geographical area of focus.
RBI is a fully-consolidated subsidiary of Raiffeisen Zentralbank Österreich AG (RZB). RZB indirectly owns around 78.5 per cent of the common stock, which is listed on the Vienna Stock Exchange; the remainder is in free float. RZB is the central institution of the Austrian Raiffeisen Banking Group, the country's largest banking group, and serves as the group head office of the entire RZB Group, including RBI.
HSBC Bank Kazakhstan is a part of the HSBC Group that serves customers worldwide from around 8,000 offices in 87 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$2,364 billion at 31 December 2009, HSBC is one of the world’s largest banking and financial services organisations. HSBC is marketed worldwide as ‘the world’s local bank’. HSBC Bank Kazakhstan has been operating in Kazakhstan since 1998 and employs approximately 750 people. It offers a range of retail and wholesale banking services for personal, corporate and institutional customers through four branches located in the largest cities of Kazakhstan: Almaty, Astana, Atyrau and Aktau.
The full press release in PDF format