Arco group refinanced its short-term debt in SEB bank in amount of 198.2 mln kroons (12.7 mln euros) in projects Laeva and Tivoli in Tallinn, Estonia. As a result of the deal new maturity of the debt is 31 March 2010 and Arco must decrease outstanding balance by the end of the term in total 56.2 mln kroons (3.6 mln euros). New balance will be 142.0 mln kroons (9.1 mln euros). Interest includes SEB's base rate on kroon facilities and the total weighted average rate is 8.12% per annum. According to the agreement Arco must maintain the level of liquid assets in amount of 150 mln kroons (9.6 mln euros) on SEB accounts. 1 EUR=15.6466 EEK Arco Vara is one of the leading real estate developer in the Baltic's, undergoing a SEE expansion with presence established already in Ukraine, Bulgaria and Romania. Core business is real estate development supported by brokerage network and construction arm. The company has offices in 26 cities and employs 570 people. According to 2007 audited consolidated results net sales was 727 mln kroons (46 mln euros), net profit before minorities 235 mln kroons (15 mln euros) and assets 3 564 mln kroons (228 mln euros). Arco Vara is listed on Tallinn Stock Exchange. 1 EUR=15,6466 EEK Heigo Metsoja CFO +372 6144 654 heigo.metsoja@arcovara.ee http://www.arcorealestate.com