VTB Bank has provided ALROSA Co. Ltd. with a RUB 44.2 billion loan for 600 days. The Company will channel the funds into refinancing the current long-term debts under loans from Russian and foreign investors.
When implemented, the deal will allow ALROSA Co. Ltd. to fully and on a timely basis settle its indebtedness and restructure its loan portfolio in favor of long-term commitments. Earlier, the Company planned to refinance the indebtedness through placing Eurobonds in November, but because of the global financial crisis, it was forced to postpone the issue.
"Under such difficult economic circumstances, VTB Bank proved to be a reliable business and financial partner for public enterprises", - said Igor Kulich, Financial CEO of ALROSA Co. Ltd.
ALROSA Co. Ltd. is one of the largest diamond producers in the world, with its share in the global diamond output accounting to 25 per cent. In 2007, ALROSA Group's rough diamond production totaled USD 2.36 billion, while its polished diamond sales totaled USD 146.7 million.