Sistema-Hals (SSA), Russian billionaire Vladimir Yevtushenkov’s property company, converted $700 million of loans from OAO VTB Bank into rubles and agreed to pay higher interest.
Yevtushenkov’s AFK Sistema holding company isn’t required to pledge more shares as collateral for the loans, Moscow-based Sistema-Hals said in a statement distributed by the Regulatory News Service. The changes take effect tomorrow, according to the statement.
The annual interest on a $500 million loan will increase to 15 percent, compared with the 8.5 percent interest agreed on the existing dollar debt, Sistema-Hals said. The rate on a $200 million portion will be fixed at 15 percent, from a margin of 5.43 percentage points over the London interbank offered rate. Three-month Libor is currently 2.22 percent.
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