Source Pravda.Ru

ALROSA receives $60bn syndicated loan

The ALROSA company has received a $60bn syndicated loan. The term of the loan is two years, Vladimir Kalitin, head of ALROSA, announced after the signing of the loan agreement. Most of these funds will be provided by the Vneshtorgbank Group. The co-organizers of the loan were Gazprombank and the International Investment Bank, and the lead managers were Donaubank AG (Vienna) and East-West United Bank SA (Luxemburg). The Bank of Moscow also took part in the deal.

Kalitin reported that the loan would be used for financing of mining and export or raw diamonds. According to him, the terms of the loan are "rather acceptable." The loan interest rate is LIBOR+8.5%. The company's products are a collateral for the loan.

Vneshtorgbank President Andrei Kostin pointed out that the bank would continue efforts to attract conditional loans. He did not rule out that some of these loans would be granted to ALROSA. Possibly, the bank will sign a memorandum on future cooperation with that company.

According to Kalitin, ALROSA is making efforts to "make borrowed funds cheaper and to extend the repayment period." The total amount of the company's investment projects is $3.2bn. These projects are to be implemented within 5 years. Kalitin pointed out that for the first time, funds for the implementation of investment projects had been obtained in the form of commodity loans. Answering the question of the ratio between the equity and borrowed funds, Kalitin reported that the equity was $800m.

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&to=http://www.alrosa.ru/' target=_blank>ALROSA

&to=http://www.eng.vtb.ru/' target=_blank>VNESHTORGBANK