December 20 (SeeNews) - Bulgarian Black Sea resort operator Golden Sands AD [BUL:ZLP] said on Tuesday that its board of directors decided to take out a 5.5 million euro ($5.8 million) investment loan from local International Asset Bank to finance the ongoing renovation of Admiral Hotel in the Golden Sands resort.
The eight-year loan, due on October 31, 2030, has annual interest equal to the six-month Euribor plus 1.80%, but no less than 3.00%, the company said in a bourse filing.
The financing must be absorbed by August 31, 2023 and is secured by an apartment hotel property in Golden Sands owned by the resort operator.
In November, the company said that it is seeing some improvement in hospitality business in the active tourist season between May and October, but the numbers remain below those in pre-pandemic 2019.
In the first nine months of 2022, Golden Sands AD increased its consolidated net profit to 2.69 million levs ($1.46 million/1.37 million euro) from 76,000 levs a year earlier.
The company has a registered capital of some 6.5 million levs. Its shares last traded at 1.46 levs on the BaSE market of the Bulgarian Stock Exchange, bourse data showed.
(1 euro = 1.95583 levs)