Further Investment in Galleria Plovdiv AD
July 20 2009 - 2:00AM
UK Regulatory
TIDMECDC
RNS Number : 9098V
European Convergence Develop. CoPLC
20 July 2009
20 July 2009
EUROPEAN CONVERGENCE DEVELOPMENT COMPANY PLC
("ECDC" OR "THE COMPANY")
Further Investment in Galleria Plovdiv AD
European Convergence Development Company PLC ("ECDC" or the "Company") announces
that it has made a commitment to a further investment of EUR6m of loan financing
to its Bulgarian joint venture associate company, Galleria Plovdiv AD. Part of
the loan funding represents a security deposit, and up to EUR2.6m will be returned
to the Company as and when further leasing is secured.
This capital injection secures refinancing of the loan provided by the project's
bank, and is expected to see the project to completion.
Whilst there are no changes in the shareholding of the joint venture as a result
of this investment. the Company has negotiated an additional share of the
distributions arising from the project in return for its investment, although
the JV partner may repay part of the Company's loan prior to any exit incurring
penalty interest in order to re-acquire the rights to that share of
distributions.
The Company had previously indicated in February 2009 that a further capital
contribution was likely to be required.
Enquiries:
+----------------------------------------------------+------------------+
| European Convergence Development Company plc | +44 (0)1624 |
| | 640200 |
+----------------------------------------------------+------------------+
| Anderson Whamond | |
+----------------------------------------------------+------------------+
| | |
+----------------------------------------------------+------------------+
| Charlemagne Capital | +44 (0)207 518 |
| | 2100 |
+----------------------------------------------------+------------------+
| Varda Lotan / Christopher Fitzwilliam Lay | |
+----------------------------------------------------+------------------+
| | |
+----------------------------------------------------+------------------+
| Galileo Fund Services Limited | +44 (0)1624 |
| | 692600 |
+----------------------------------------------------+------------------+
| Ian Dungate, Company Secretary | |
+----------------------------------------------------+------------------+
| | |
+----------------------------------------------------+------------------+
| Panmure Gordon & Co. Limited | 44 (0)20 7459 |
| | 3600 |
+----------------------------------------------------+------------------+
| Hugh Morgan | |
+----------------------------------------------------+------------------+
| Stuart Gledhill | |
+----------------------------------------------------+------------------+
| | |
+----------------------------------------------------+------------------+
| Smithfield Consultants | +44 (0)20 7360 |
| | 4900 |
+----------------------------------------------------+------------------+
| John Kiely | |
+----------------------------------------------------+------------------+
| Gemma Froggatt | |
+----------------------------------------------------+------------------+
Website: www.europeanconvergencedevelopment.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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