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Debt financing

Bank lending is one of the main finance resources for Obuv Rossii Group. The key financial partners of the Company are VTB Bank (PJSC), Promsvyazbank PJSC, Sberbank PJSC, UBRD PJSC, Svyaz-Bank PJSC, Absolyut-Bank PJSC. At the end of 2019, 64% of the loan portfolio consisted of long-term liabilities, the other 36% were short-term liabilities. 

The Company uses the following financial instruments:

unsecured lending;  

long-term (partially secured) lending.

Obuv Rossii has a reputation for being a reliable borrower with a positive credit history, that is why the Company has long-term partnerships with the largest Russian banks being the leaders of the domestic banking market.

Due to IPO in 2017, Company’s credit ratings were upgraded and a weighted average interest rate on bank loans significantly decreased to 10.61% as of the end of 2017 and to 9.88% as of the end 2018, to 8.98% as of the end 2019.

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