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. Last Updated: 07/27/2016

PIK to Get $500M From Sberbank

Sberbank is ready to provide PIK Group with up to 15 billion rubles ($494 million) in financing for new projects, as long as the developer services its existing debt with the state-owned lender, bank Chairman German Gref said Sunday.

“The decision has been made — we will restructure the company’s debt,” Gref said. “We’re ready [to provide financing] if the company will successfully service its obligations, finance new projects under state guarantee and use its construction equipment as collateral.”

The company already owes 14 billion rubles to Sberbank, 2 billion of which has accumulated overdue interest, Gref said.

Shares in PIK spiked more than 30 percent last week after the government announced it would guarantee more than $450 million of the company’s debt to the state banks.