AFI Development, a real estate company focused on developing property in Russia and the CIS, has announced that it has reached an agreement with VTB Bank on the extension of the Mall of Russia credit facility agreement between the company and VTB Bank.

The terms of the agreement are an improvement on those agreed in August 2008, the developer said.

AFI Development's Mall of Russia is due to open in December 2010. The company has entered into an addendum to the credit facility, under which the repayment term has been extended by two years to August 2013 and the interest rate has been lowered from 16% to 13.25% per annum in Rouble terms.

The facility, for the total amount of RUB 8.4 bn (about EUR 215 mln has been used to finance the construction of the company's Mall of Russia project. As at end-June this year, a total of RUB 6.4 bn has been drawn down..