November 24, 2009, 13:43 / Business

Alrosa will borrow up to $230 million

Alrosa may place annual Eurocommercial paper (ECP) for approximately $230 million at 8.75–9%, a source close to the company said. The exact placement volume and timing will be announced later. The securities will be issued as part of the company's ECP placement program for a total amount of $700 million.

According to Interfax, VTB Capital may become the organizer of the paper placement. A bank representative has not yet commented on this information.

Alrosa needs money to refinance its debt. At the end of nine months, its net debt under RAS amounted to 122.9 billion rubles, including 108.6 billion rubles. must be repaid within a year. Compared to the first half of the year, the company's net debt decreased by 16.7 billion rubles. According to the company's plans, by the end of the year its debt will be reduced to $3.3 billion. Thanks to increased demand for diamonds and positive exchange rate differences in the revaluation of loans denominated in foreign currency, Alrosa managed to earn 5.9 billion rubles in the third quarter. profit and, based on the results of nine months, reduce the loss to 8.8 billion rubles. compared to the first half of the year.