Alrosa Lends Its Diamond Subsidiary $71 Million

Russian state-owned diamond company Alrosa sealed a deal with its subsidiary OJSC Severalmaz stipulating that the former agrees to lend the latter the equivalent of $71 million in order to support its operations and activities, Rough and Polished reports. The loan comes just five months after the two firms signed an almost identical agreement for a loan of approximately $68 million.

According to the details of the arrangement, Severalmaz has under the end of the 2020 calendar year to return the sum, plus 8.43% annual interest. The money will be repaid to Alrosa on four separate dates in March, June, September and December of that year, with the overwhelming bulk of the funds to be paid on the final date, Christmas Day 2020.

The loans were arranged after 2012 turned out to be an especially disappointing year for Severalmaz. After achieving $1.39 million in net profit in 2011, it suffered a $10.58 million net loss in 2012. So far this year, production has rebounded, according to Rough and Polished.

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