Arco Vara refinanced an important loan in Bulgaria

Arco Invest EOOD, a subsidiary of Arco Vara AS, has signed a loan agreement with Raiffeisenbank in Bulgaria in the amount of 6 mln euros for refinancing the bank loan received from Piraeus Bank for Madrid Blvd project, which was becoming due at the end of 2019. The term of the new loan is nearly 5 years and the agreement foresees modest quarterly repayments with one larger repayment in October 2024. The interest rate of the loan decreased.

Arco Vara’s CEO Tarmo Sild comments: “Refinancing the Madrid Blvd loan has been one of the strategic objectives of Arco Vara, which has now been achieved after filling the building with paying tenants. With that milestone, approximately one quarter of the Group's balance sheet and approximately half of the Group's liabilities have been stabilized for the next five years. 
Servicing the loan will be cheaper as well, which in turn will increase the amount of money remaining in shareholders' hands starting from 2020 and onwards.”

Kristel Tumm
CFO
Arco Vara AS
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