Alrosa Takes $100 Million Loan, Raises Prices

Russian mining giant Alrosa is looking into its finances and has decided to take a $100 million loan while also raising prices of its rough diamonds.

Alrosa said on Friday it instructed major banks Citibank and Societe Generale to arrange a $100 million three-year unsecured loan.

Under the agreement, the loan facility may be increased to $300 million through syndication in the international loan market.

The company said the loan will be used to refinance the company’s short-term debt in line with its policy of restructuring its corporate loans.

Citibank and SC CIB are acting as lead arrangers for the loan while SG CIB is the facility agent.

In other news, following strong demand for rough diamonds and recent price hikes by De Beers and other miners, Alrosa is reportedly planning to raise prices too, by an average of 10 percent, says the Moscow Times.

Alrosa was not immediately available to comment on the report.