Frontier Development PLC

Capital/Financing Update • Jun 1, 2016

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RNS Number : 9473Z

AFI Development PLC

01 June 2016

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION

IN OR INTO THE RUSSIAN FEDERATION, THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN

AFI DEVELOPMENT PLC

("AFI DEVELOPMENT" OR "THE COMPANY")

NEGOTIATIONS WITH VTB BANK

London, 1 June 2016 - Following the Company's previous announcements regarding its negotiations with VTB Bank PJSC ("the Bank") (as announced by the Company on 30th March 2016, 3rd May 2016, 17th May 2016 and 26th May 2016), the Company confirms that AFI Development and the Bank have agreed in principle the documentation of the transaction in respect of circa US$614 million of loans owed to the Bank as outlined in the announcement of 26th May 2016. The parties aim to complete the transaction by the previously specified deadline, 10th June 2016, subject to FCA's consent under Listing Rule 10.8.

In the event that the transaction is not completed by 10th June 2016 and the Bank exercises it rights under the loan facility agreements, it is highly probable that there would be a material adverse effect on the group's operations and on the value of the Company's shares.

- ENDS -

For further information, please contact:

AFI Development +7 495 796 9988

Ilya Kutnov

Citigate Dewe Rogerson, London +44 20 7638 9571

David Westover 

Sandra Novakov

Marina Zakharova de Calero

About AFI Development

AFI Development is one of the leading real estate development companies operating in Russia. Established in 2001, AFI Development is a publicly traded subsidiary of Africa Israel Investments Ltd.

AFI Development is listed on the Main Market of the London Stock Exchange and aims to deliver shareholder value through a commitment to innovation and continuous project development, coupled with the highest standards of design, construction and quality of customer service.

AFI Development focuses on developing and redeveloping high quality commercial and residential real estate assets across Russia, with Moscow being its main market. The Company's existing portfolio comprises commercial projects focused on offices, shopping centers, hotels and mixed-use properties, and residential projects. AFI Development's strategy is to sell the residential properties it develops and to either lease the commercial properties or sell them for a favorable return.

AFI Development is a leading force in urban regeneration, breathing new life into city squares and neighborhoods and transforming congested and underdeveloped areas into thriving new communities. The Company's long-term, large-scale regeneration and city infrastructure projects establish the necessary groundwork for the successful launch of commercial and residential properties, providing a strong base for future.

This information is provided by RNS

The company news service from the London Stock Exchange

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