OREANDA-NEWS. December 23, 2009. MirLand Development, residential and commercial property developer in Russia, signed a loan agreement with Uniastrum Bank by which the bank will extend a non-revolving credit facility of up to US 30m., reported the press-centre of OTKRITIE Financial Corporation. 

The first US 15m tranche was received on December 17, 2009. The second US 15m tranche will be available when OJSC MAG, a subsidiary of the company, meets target revenues from the MAG project. The loan will be used to fund the working capital requirements of the company.

View: The new loan agreement is particularly good for the company because the loan has a 10-year repayment period and because the loan interest rate of 10.7% is lower than the company's implied rate (13.4%).

Action: We do not cover the stock, at present but consider this news positive for the company.