Alrosa announces measures on short-term debt refinancing

Russia-owned diamond miner Alrosa (MCX:ALRS) announced it has allocated two long-term bank loans for a total amount of $1.09 billion with a maturity of 3 years.

The loans were allocated for early repayment of $820 million bank loans with maturity in June and December 2014.

Diamond mining company Alrosa’s bank loans and public debt instruments account for $4 billion with long-term debt share of 88% as of Wednesday.

Debt increase of $270 million is explained by creating liquidity source for $500 million Eurobond repayment in November 2014, according to the company’s press release.

Alrosa had previously planned to refinance with the sale of its oil and gas assets to Russian oil giant Rosneft for $1.4 billion. The company is due to repay $1.3 billion debt between April 1 and the end of this year.

Last week, the world’s largest diamond miner said output jumped by 6% in the first quarter of the year, in comparison to the same period of 2012 due to development of new mines.

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