ALROSA repaid part of Bank loan in the amount of $720 million with a rate of 4.3% per annum and maturing in 2019 and refinanced the balance owed on the loan at lower interest rates, according to a press release from the company.
$600 million of the $720 million refinanced by raising of two new loans from Raiffeisenbank and ROSBANK in the amount of $350 million and $250 million respectively, maturing in December 2018. The remaining part of the loan in the amount of $120 million was repaid ALROSA at the expense of free cash flow. As a result of the activities of ALROSA debt reduced to $1.84 billion USD.
“We were able to attract debt financing from international banks at a cost below the yield to maturity of Eurobonds of ALROSA, which confirms the stable financial position of the Company. The effect of savings on interest payments Companies as a result of the measures will exceed $30 million,” – said Vice-President for economy and Finance of ALROSA Alexey philippovskiy.