Vneshtorgbank and Moscow Narodny Bank (MNB) became the arrangers of a syndicate loan for Hydroshikapa s.a.r.l., the Angolan subsidiary of ALROSA worth USD 62.4 million.
The facility is granted for a 6-year term and guaranteed by ALROSA. The funds raised will be used to complete hydroelectric power station on the river Shikapa in Angola.
In 2004, Vneshtorgbank already participated in the project finance and granted a loan for hydroelectric power station construction worth USD 49.5 million under ALROSA guarantee.
This Station is designed to provide electric-light services to ore-mining company Catoca (Angola) and Saurimo, the capital of Lunda Sul province. When put into operation, hydroelectric power station on the river Shikapa will increase operational efficiency of Catoca, more than 10 years acting under ALROSA participation and will also open prospects for new projects development in Lunda Sul, as well as for improving socioeconomic situation of the region in general.
ALROSA is one of the world's major diamond-mining companies with a 25% share of the world's output. The volume of diamond sales mined in Africa increased USD 3.1 billion in 2005. The shareholders of ALROSA are Rosimuschestvo with 37% of shares, the Ministry of state-owned property of Yakutia with 32% shares. 8 uluses of Yakutia own 8% of the company's shares.
HYDROSHIKAPA S.A.R.L. is ALROSA subsidiary established in the Republic of Angola. Its major activity is to act as hydroelectric station on the river Shikapa in Angola. ALROSA share in the Hydroshikapa capital amounts to 55%.
ORE-MINING COMPANY CATOCA is a joint enterprise established on the territory of the Republic of Angola in 1992 by NPO Yakutalmaz (Russia), Endiama diamond exploration national enterprise (Angola) and Odebresht Mining Service Inc. (Brazil) for mining and sale of diamonds of kimberlite pipe Catoca, which is one of the largest kimberlite pipes in the world. ALROSA (cessionary of Yakutalmaz) ownes 32.8% of the enterprise share.