Shares of Gagfah S.A. (GGFHF.PK) climbed about 5 percent Friday morning, after the German residential property firm announced it has signed refinancing of its 2.061 billion euros GRF loans, with improved terms.
According to the company, the refinancing has interest rate of 2.76 percent and amortization 0.5 percent per annum. The current interest rate of the loan is 4.32 percent. The refinancing is expected to close on June 20.
The loan will be refinanced through commercial mortgage-backed securities or CMBS structure with a maturity of five years plus one year extension possibility, Gagfah noted.
"The refinancing at such attractive terms puts us in a great position and enables us to shift focus on our core business," said Thomas Zinnöcker, CEO of Gagfah Group and member of the board of directors of Gagfah S.A.
Earlier this year, Gagfah had closed WOBA financing with Bank of America Merrill Lynch, with a loan amount of 1.077 billion euros. The company also paid a previous loan of 1.04 billion euros due in May, 2013, with the financing.
It was on March 22, that Gagfah announced the appointment of Zinnöcker as new CEO of Gagfah Group, and a member of the board of Gagfah S.A., effective April 16, 2013. He succeeded Stephen Charlton, who had tendered his resignation.
On Frankfurt's Xetra, Gagfah shares are currently trading at 9.60 euros, up 4.73 percent.
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