ALROSA has cleared $100 million of debt owed to VTB bank and refinanced $400 million, a company spokesman told Interfax.
ALROSA owed VTB $500 million, which on October 1 accounted for 14 percent of the rough diamond manufacturer's debt. ALROSA cleared $100 million with its own funds. VTB itself has allocated a $150 million loan and the company has borrowed $250 million from another bank, which it has not named, Rapaport reported.
ALROSA had a debt/EBITDA ratio of 2X on June 30, 2011. Debt at the end of the third quarter, September 30, was RUB 107.48 billion, back to the 2010 level. ALROSA plans to clear debt of $359 million in 2012, including $250 million to VTB, just $4 million in 2013, $500 million in Eurobonds in 2014 and $816 million in ruble bonds in 2015.
ALROSA raised $1.26 billion in April, in a Euro Commercial Paper (ECP) placement. The company placed $700 million in nine month ECP with yield of 4.125 percent per annum, and $300 million in 12-month ECP with yield of 4.25 percent. After a few days it placed $260 million in seven month ECP with yield of 3.75 percent.
The money was used to buy up 90 percent of ALROSA gas assets (Geotransgaz and Urengoi Gas Company) for $1.037 billion from VTB. This amount comprises $620 million paid to VTB structures for the gas assets in 2009, interest of $195 million and investment of $221 million. ALROSA bought 10 percent of each company from Metropol and thus consolidated all of these companies.
The ALROSA group forecasts revenue of $5.07 billion in 2012, 15 percent higher than 2011. The company may reduce its 34.6 million carat diamond production target in 2012. ALROSA posted revenue of $1.2 billion in the first quarter of 2012, more than 25 percent higher than the same period of 2011.
Exclusive
Dr M'zée Fula Ngenge: Demand for considerable-sized diamonds stronger than ever
The African Diamond Council (ADC) chairperson Dr M'zée Fula Ngenge told Rough & Polished’s Mathew Nyaungwa in an exclusive interview that although overall global diamond prices have been somewhat soft, the demand for considerable-sized diamonds...
02 september 2024
Amplats sees prospects as a standalone company
Anglo has revealed its plans to demerge Anglo American Platinum (Amplats), which has operations in South Africa and Zimbabwe, to optimise shareholder value. Rough&Polished contacted Amplats to comment on this and other issues but was referred...
19 august 2024
WFDB President Yoram Dvash Remains Confident Despite Global Diamond Challenges
Yoram Dvash is President of the World Federation of Diamond Bourses (WFDB) having been elected in 2020. He found time in his busy schedule to speak to Rough&Polished about the state of the diamond industry around the world and some of the major...
12 august 2024
Lyudmila Vysotskaya: Amber is a mystical stone, a living substance
Lyudmila Vysotskaya is a Kaliningrad-based amber artist and designer, expert, chairwoman of the Amber Academy and member of the Creative Union of Artists in Decorative and Applied Arts. This summer, visitors could admire the art works by Lyudmila Vysotskaya...
30 july 2024
De Beers shines light on budding jewellery designers
Diamond giant De Beers will this year conduct its bi-annual Shining Light Awards jewellery design competition. De Beers beneficiation manager Kagiso Fredericks told Rough & Polished's Mathew Nyaungwa in an exclusive interview they set aside 4.5 carats...
22 july 2024
