OREANDA-NEWS. Sberbank CIB and R.G.I. International Limited (RGI) have signed a loan agreement to finance the second phase of the construction of RGI's flagship 1.35 mln sq. m Microgorod "V Lesu" residential community development. The loan agreement amounts to RUB 5,8 bln (USD 160 mln).

The loan is for a maximum of 44 months at a fixed rate of 11.8% interest per annum. A portion of proceeds from presales must, each month, be applied to repay the loan with the outstanding balance repayable in four equal tranches commencing in the 26th month after drawdown and quarterly thereafter. Interest is payable quarterly over the life of the loan.

As announced in RGI's results on Monday 24 March 2014, the Microgorod "V Lesu" development is progressing to schedule and the first tenants are moving into their apartments during the current quarter.

RGI has been successfully creating new markets in Moscow real estate since 1993.  The Company's innovative drive played a key role in the transformation of Moscow's Golden Mile in the 1990s, when new landmark buildings were constructed that set the benchmark for modern living and working spaces in the rapidly changing Russian capital.

Today the Company is focused on serving Moscow's growing middle class professionals by building aspirational, design led, residential communities. Its pioneering Microgorod V Lesu project has set new standards for the Moscow residential sector by offering homebuyers a well configured development, with good facilities and apartments finished to a high quality. In addition to its distinctive residential properties, RGI developed, owns and operates Tsvetnoy Central Market, Moscow's first iconic department store on Tsvetnoy Boulevard. The Company is listed on the LSE's AIM market and has significant land holdings in central Moscow.