ZAGREB (Croatia), September 30 (SeeNews) - Croatia's Arena Hospitality Group [ZSE:ARNT] said it has signed a refinancing agreement for an existing loan and a credit deal to finance planned investment with local lender Zagrebacka Banka.
The two deals were signed on September 26, Arena said in a statement with the Zagreb bourse on Friday.
The first agreement refers to the refinancing of the overdue principal on a loan contracted on December 20, 2017. The new lending will comprise loans of 205 million kuna ($30 million/28 million euro) and 32 million euro ($35 million), the statement said.
The new loans mature in 2027, like the old loan. The kuna-denominated loan bears a fixed annual interest of 1.95% and the euro loan has a fixed annual interest of 2.3%.
The hospitality group said that the new interest rates are more favourable than the previous one, but did not provide comparison.
At the same time, Arena signed a 60 million kuna loan for the financing of future investment at a fixed annual interest of 1.9%. This loan also matures in 2027, it said.
The funding will go towards the company's capital investment plans, which are part of a short- and long-term investment programme worth 500 million kuna, aimed at the renovation of the Arena Kazela camp, Verudela Beach Resort, Hotel Brioni and art'otel Berlin Kudamm, among others.
The group's shares traded down 0.54% at 366 kuna by 09:00 CET on Monday, after closing unchanged at 368 kuna on Friday.
Arena Hospitality Group comprises seven hotels, four self-catering holiday apartment complexes, eight campsites and many food and beverage outlets. It owns, co-owns, leases or manages 15 hotels, four self-catering holiday apartment complexes and eight campsites.
(1 euro = 7.4102 kuna)