Russian mining giant Alrosa has announced that it has made “an early repayment of a part of its $720 million bank loan due in 2019”, according to Diamond World. This loan held an interest rate of 4.3%, and Alrosa refinanced the remaining balance at lower interest rates.
According to the miner, it has refinanced $600 million out of $720 through two new loans of $350 million and $250 million. The loans were issued by Raiffeisenbank and Rosbank respectively, and are due for repayment in December 2018. The remaining $120 million was repaid ahead of schedule. In total, these actions have reduced Alrosa’s debt to $1.84 billion.
Alexey Philippovskiy, Chief Financial Officer of the company, said: “We managed to borrow from international banks at a rate lower than the yield to maturity of ALROSA’s Eurobonds, which confirms the Company’s stable financial position. The impact of lower interest rate payments driven by these initiatives will exceed $30 million”.
