CDS Group and DOM RF Bank Sign a Project Finance Agreement
CDS Group and DOM.RF have signed an agreement to open a RUB12.9 billion line of credit for the construction of 4 units of the ‘Chernaya Rechka’ business residential quarter that CDS is building in St. Petersburg covering the area of 288 thousand square meters. The launch of the next unit is scheduled for Q4 2019 and the project will be fully completed by the end of 2025.
‘Chernaya Rechka’ is the company’s flagship and the first residential complex of the Group to receive project financing. At the moment, all CDS projects are built in accordance with the previously approved rules using equity holders’ funds. Now the company is negotiating with banks, choosing the best conditions for cooperation on project financing to use escrow accounts in the future.
Azhar Lotik, the Head of the Liquidity Management Department of CDS Group, said:
‘Bank DOM.RF is a new and welcome partner for CDS and this further project financing demonstrates the market’s confidence in CDS, creating great opportunities for the company. We have carried out a large‐scale study, calculated our costs and are ready to enter a new level of banking relationships’.
DOM.RF is a mortgage and construction bank, part of the DOM.RF Financial Development Institute group. It is an authorized bank operating in the field of housing development. The Bank was one of the first on the market to introduce project financing for developers using escrow accounts. It cooperates with developers in all regions of Russia. Currently DOM.RF has more than 270 applications for project financing amounting to more than RUB350 billion with a total construction covering 7.7 million square meters. About 45 applications amounting to RUB99.6 billion with construction covering 2.6 million square meters have already been approved.