Wednesday, July 4, 2012

Petra Diamonds secures $25m debt facility to fund expansion

Petra Diamonds has secured a US$25 million revolving credit facility with a World Bank member to fund its plans to boost its annual production to five million carats by 2019.
The FTSE 250 diamond miner's new facility with IFC is in addition to the US$36.9 million debt facility provided by Rand Merchant Bank in November last year, which will now be reduced to US$24.6 million.
The two facilities will total US$49.6 million, taking the total amount of Petra’s debt facilities to US$147.4 million with US$78 million still available.
Investors welcomed the news with shares in Petra climbing three percent to 125.6 pence, giving it a market cap of £635.1 million.
“We are delighted to have entered into further credit facilities with IFC, whose continued support endorses the quality of our asset base,” said chief executive of Petra Diamonds Johan Dippenaar.
“These combined IFC and RMB facilities further strengthen Petra's financial position and the company's ability to deliver on its core objective of rolling out its stated expansion plans and ramping up production.”

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