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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.
 

Firms from Armenia want to step up the amount of diamonds they import from Russia.

Diamond-cutting companies in Armenia are looking to increase the amount of the precious stones they import from Russia, it has emerged.

According to Rapaport, companies from the country are keen to bring in diamonds worth $100 million (£63 million) annually.

The firms would enter into an agreement with Russia's state-owned diamond mining company Alrosa and are keen to sign contracts with as many businesses as possible that are on Alrosa's client list.

This follows a meeting of the Armenian-Russian intergovernmental commission on economic cooperation that took place in Yekaterinburg in Russia recently, at which a new protocol regarding diamond trading between the two nations was adopted.

Under the terms of the agreement, Alrosa – which accounts for 97 per cent of Russia's overall diamond output and was responsible for 25 per cent of global diamond production in 2002 – will sell precious stones worth between $20 million and $30 million to Armenian companies during 2011.

Diamonds are set to be a major part of an upcoming Christie's auction, it has been announced.

According to the company, its autumn sale is to take place on November 29th at the Hong Kong Convention and Exhibition Centre, consisting of more than 3,000 of the rarest gemstones and unique jewellery.

The combined value of the items is said to be more than $55 million (£35 million) and leading the sale is "one of the more important diamonds offered at auction in recent years", called The Perfect Pink – a 14.23 carat Fancy Intense Pink jewel.

In addition, the sale will include a number of white diamonds, including Golconda diamonds that have a "luminous" quality rarely seen in stones from locations such as Africa, Brazil and Russia.

It was recently revealed a diamond with similarly unique characteristics has been found in South Africa.

Resource group Namakwa Diamonds discovered the 7.53-carat Vivid Orange gem alongside a 26.74-carat Type IIa stone. 

The Russian mining giant is in talks to supply rough diamonds to three Indian companies, with the deals expected to be signed next year.

Russian diamond miner Alrosa is planning to open an office in India and is in negotiation to supply the precious stones to three companies in the country.

Domain-B reports Russian news agency RIA Novosti as saying the state-owned firm will distribute rough diamonds to the three enterprises – Diamond India, Ratilal Becharlal & Sons and Rosy Blue – providing they can agree contracts.

It is seeking to sign three-year deals with each business, which would see it provide rough gems worth $490 million (£308 million).

Signing of the agreements is expected to take place in March 2011, when Russian prime minister Vladimir Putin will make a working visit to Russia.

Recent figures released by the mining giant – which is responsible for 97 per cent of Russia's total diamond output – showed it expects to have sold rough and polished examples of the precious stones worth in excess of $2.78 million in the first nine months of 2010.