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Obuv Rossii Signed an Agreement with PSB Group on Extending the Credit Line of more than RUB 2 bln

Obuv Rossii Signed an Agreement with PSB Group on Extending the Credit Line of more than RUB 2 bln

Obuv Rossii Group and Promsvyazbank PJSC, one of the key financial partners of the Group, have agreed to extend the existing credit line of more than RUB 2 bln with reduced financing cost until November 2022.

Obuv Rossii implements a strategy to further reduce the cost of financing and to increase the share of long-term liabilities. Thanks to the agreement with PSB, the retailer will reduce interest costs in the second half of 2020 and the following years.

During the period of the anti-pandemic restrictions, the company reached agreements with partner banks and significantly reduced the amount of interest and loan principal payments in 2020. At the beginning of autumn Obuv Rossii signed agreements to extend existing credit lines with two other key financial partners of the Group — Sberbank and VTB — until 2022 and 2025, respectively, on the total amount of RUB 6.5 bln. Thus the Group has reached long-term cooperation agreements with all existing creditors.

In September 2020, the Expert RA rating agency confirmed the ruBBB+ credit rating of Obuv Rossii. The outlook for the rating is stable. Factors such as the company's effective work in managing the credit portfolio, increasing the share of long-term borrowings as well as having sufficient long-term outstanding credit lines to refinance short-term debt had a positive impact on the rating.


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