Chagala Group Limited Update on Financing Requirements and Sources (4301P)

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RNS Number : 4301P

Chagala Group Limited

17 November 2016

Chagala Group Limited

17 November 2016

Update on Financing Requirements and Sources of Financing

Further to the announcements by Chagala Group Limited (the "Company" or "Chagala" and, together with its subsidiaries, the "Group") made on 3 November 2016 and 4 November 2016, the Company hereby provides the following update as to the Group's current financing requirements and sources of financing.

On 11 November 2016, Caspi Limited LLP ("Caspi"), a wholly-owned subsidiary of the Company, received a commitment from Bank CenterCredit ("BCC"), a Kazakhstan bank, to provide a US$12.5 million 60-month credit facility (the "BCC Credit Facility"). Al Hilal Bank ("Al Hilal"), with whom the Group has its existing credit facilities, had previously informed the Company that if the Group were to incur new indebtedness, then the Group would be required, under the terms of the Al Hilal credit facilities, to repay all of its existing indebtedness to Al Hilal. Accordingly, the Group expects that it will be required to repay its indebtedness to Al Hilal when it draws down funds under the BCC Credit Facility. The Company believes that amounts available under the BCC Credit Facility will provide the Group with sufficient funds to meet its current financing requirements, including in particular the repayment in full of the Group's KZT Bonds in an aggregate principal amount of approximately US$6.6 million when they mature on 1 December 2016 and the repayment of the Group's indebtedness to Al Hilal, the current outstanding principal amount of which is approximately US$5.9 million. The Group will pay accrued interest on such indebtedness out of its existing cash resources.

The Company expects that Caspi will enter into, and draw down funds in the amount of US$12.5 million under, the BCC Credit Facility on or about 27 November 2016. As a result of the availability of such funds, the Group does not have an immediate need for equity financing and accordingly the Company has no current plans to conduct a placing and open offer transaction.

For more information:

 
Francisco Parrilla, Chief Executive 
Chagala Group Limited                 + 7 (727) 355 04 84 
 

Chagala Group

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, guest houses, 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.

This information is provided by RNS

The company news service from the London Stock Exchange

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November 17, 2016 03:00 ET (08:00 GMT)