OREANDA-NEWS. May 29, 2012. Kazakhstan Kagazy JSC has agreed new and improved terms for its outstanding liabilities with the European Bank for Reconstruction and Development ("EBRD"), as the Group said in a press release.

Both parties have agreed new terms for a loan with an outstanding principal of USD 30 million. Specifically, the maturity of the loan was extended for one more year to 2016. At the same time the margin on the interest rate on the loan will be reduced to 4.0% per annum if certain financial covenants are met.

Taisiya Kogutyuk, CEO of Kazakhstan Kagazy, commented: "We are very pleased with the constructive outcome of our negotiations with EBRD and that we have reached a mutual understanding on all important matters. We thank the Bank for its trust put in the Group”.

New terms and conditions of the loan will apply upon the signing of legal documentation.

Kazakhstan Kagazy Group produces paper, corrugated cardboard and cardboard containers. It maintains leading positions in paper and cardboard market in Kazakhstan.

The European Bank for Reconstruction and Development is an international financial organization which finances projects across 29 countries covering from Central Europe to Central Asia.