Alrosa bond hobbled by De Beers doubt.

(From Mineweb)

(Mineweb.com) -- Alrosa, Russia's dominant diamond miner and second to De Beers in global production, has been forced to cut its Eurobond fund-raising from $800 million to $300 million, sources close to the company have told Mineweb. Sources inside Alrosa will not explain the reason. But it appears to have reflected growing concern in the international diamond market that, as Alrosa cuts deliveries to De Beers, once its exclusive export partner, the heavily-indebted Russian company is viewed as less creditworthy. In its prospectus to investors, issued on October 25 by ING and JP Morgan, Alrosa had left blank the amount of Eurobonds it has been hoping to issue to investors this month. However, Alrosa has confirmed that its target, ahead of its roadshow for investors, was $800 million for a 10-year term. Alrosa has confirmed to Mineweb that the target was cut by two-thirds, once the roadshow began. The interest rate has also been raised.

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