At a meeting on August 26, ALROSA's Supervisory Board issued a recommendation for shareholders to approve the payment of interim dividends for the first half of 2024 at the next general meeting in the amount of 18.3 billion rubles ($200 million), or 2.49 rubles per share.
In accordance with ALROSA's policy, dividend payments are calculated based on free cash flow and debt burden of the company, but no less than 50% of net profit under IFRS.
ALROSA's net profit for the first half of the year under IFRS amounted to 36.63 billion rubles. The final decision on dividend payments will be made at an extraordinary general meeting of shareholders, which will be held on September 30, 2024.
Meanwhile, the diamond miner plans to issue four-year bonds worth 20 billion rubles with monthly coupon payments, which will be tied to the Bank of Russia’s interest rate plus a premium. The technical bond placement is expected on September 23, RIA Novosti reports citing its own sources.
The company intends to use the funds raised for general corporate purposes, refinancing current debt, and extending the term of its debt portfolio.
Theodor Lisovoy, Managing Editor, Rough&Polished
