Demand high for diamond producer’s bond
Saturday, October 30th, 2010
Russian diamond miner Alrosa has launched a bond for investors.
Alrosa, the Russian diamond miner that produces precious gems for use in diamond rings and diamond jewellery, has launched a bond.
This is according to Andrey Solovyov, head of debt capital markets at VTB Capital, on organiser of the issue, Reuters reports.
The $1 billion (£626 million) Eurobond runs for ten years and Mr Solovyov told the news source that demand has been high, with around 200 investors taking part.
He explained the book for the placement – which was also handled by JP Morgan and UBS – was "oversubscribed nearly two times".
Alrosa produces 96 per cent of overall diamond output in Russia and currently accounts for a quarter of diamond output worldwide.
In 2009, it produced 35 million carats of rough diamonds for use in items such as diamond engagement rings, valued at around $2.2 billion.
Rapaport recently reported Armenian firms are looking to enter into sales agreements with Alrosa and increase the amount of diamonds they import from Russia.
