Orava Asuinkiinteistörahasto Oyj - Company Announcement

THE COMPANY HAS SIGNED A SECURED EUR 15 MILLION CREDIT FACILITY AND CONTINUES PREPARATIONS FOR THE ISSUE OF A SECURED BOND OF AN ESTIMATED AMOUNT OF EUR 25 MILLION

Orava Residential Real Estate Investment Trust plc

STOCK EXCHANGE RELEASE 11 March 2015 at 9.55 a.m.





THE COMPANY HAS SIGNED A SECURED EUR 15 MILLION CREDIT FACILITY AND CONTINUES
PREPARATIONS FOR THE ISSUE OF A SECURED BOND OF AN ESTIMATED AMOUNT OF EUR 25
MILLION 



On 23 January 2015, Orava Residential Real Estate Investment Trust plc (the
“Company”) announced that it was investigating possibilities for the
implementation of a financing arrangement of a total estimated amount of EUR 40
million consisting of a revolving credit facility of an estimated amount of EUR
15 million and a fixed rate secured bond of an estimated amount of EUR 25
million. 

As part of preparations of the financing arrangement, on 4 March 2015 the
Company signed a secured EUR 15 million credit facility agreement with Danske
Bank Oyj. The drawdown of a loan under the facility is conditional upon inter
alia, the issuance of a fixed rate secured bond of an estimated amount of EUR
25 million. The facility is made available for five years and will be used to
finance the acquisition of shares in mutual real estate companies and housing
companies comprising residential housing. The credit agreement includes
customary financial covenants relating to real estate financing, such as a loan
to value covenant, an interest cover ratio covenant and a minimum
collateralisation covenant. 

The Company continues preparations for the issue of the fixed rate secured bond
with a maturity of five years. The Company will apply for the listing of the
bond in NASDAQ OMX Helsinki Ltd. 

Danske Bank Oyj acts as the lead manager and arranger in the above transactions
and Castrén & Snellman Attorneys Ltd acts as the Company's legal adviser. 

Orava Residential REIT

Pekka Peiponen

CEO



Additional information

Veli Matti Salmenkylä, CFO, tel. +358 10 420 3102

Pekka Peiponen, CEO, tel. +358 10 420 3104



http://www.oravaasuntorahasto.fi/