SRV Group Plc has agreed on a capital loan of EUR 9 million

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SRV GROUP PLC         INSIDE INFORMATION      31 MARCH 2020  17.05 EET

SRV Group Plc has agreed on a capital loan of EUR 9 million

SRV Group Plc ("SRV") has today agreed on a loan arrangement, where OP Life Assurance Company Ltd, Pohjola Insurance Ltd and AS Pontos Baltic, a subsidiary of Pontos Ltd (the "Lenders"), grant SRV a capital loan in the aggregate amount of EUR 9 million, which is subject to the provisions of Chapter 12 of the Finnish Companies Act on capital loans.

Annual interest at the rate of 12 per cent shall be paid on the capital loan, provided that the prerequisites for interest payment are met. Accrued and unpaid interest on the capital loan shall be paid upon the final repayment of the capital loan.

The purpose of the capital loan, already before the contemplated rights issue announced by SRV on 6 February 2020, is to strengthen SRV's capital structure and to facilitate securing compliance in the prevailing uncertain economic situation under unusual conditions with the covenants contained in SRV's financing agreements.

The capital loan becomes due and payable on 1 February 2022, provided that the prerequisites for repayment are met. The Lenders may, however, pay for new shares subscribed for in the contemplated rights issue announced by SRV on 6 February 2020 by setting of the principal amount of the capital loan.

However, interest accrued from the date of the drawdown of the capital loan until the anticipated allocation date of the contemplated rights issue shall exceptionally mature for payment in advance on 2 April 2020. The amount of the interest maturing in advance is EUR 225,000.

 

For further information, please contact:
Saku Sipola, President & CEO, tel. +358 (0)40 551 5953, saku.sipola@srv.fi
Ilkka Pitkänen, CFO, tel. +358 (0)40 667 0906, ilkka.pitkanen@srv.fi

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www.srv.fi

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SRV in brief

SRV is a bold developer and innovator in the construction industry. We want to offer the best customer experience as a constructor of urban city centres, while also being the most attractive employer in the industry. Our genuine cooperation and enthusiasm for our work comes across in every encounter. Sustainability is reflected in all our activities.

Established in 1987, we are a publicly listed company since 2007 in Helsinki Nasdaq stock exchange that operates in selected growth centres in Finland and Russia. Our revenue in 2019 was EUR 1,061 million. Over 1,000 people work for us and we employ a network of almost 4,000 subcontractors in our projects.

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