Business
IFC / RMB Debt Facility Agree
IFC / RMB Debt Facility Agree.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n RNS Number : 4737T Petra Diamonds Ld 29 September 2010 \n \n\n \n \n\n\n\n\nImmediate Release\n\n\n29 September 2010\n\n\n\n\n \n \nPetra Diamonds Limited \n(\"Petra\" or \"the Company\" or \"the Group\")\n \nIFC / RMB Debt Facility Agreements Signed\n \n \nFurther to the announcement of 2 June 2010, Petra is pleased to confirm that it has now signed final loan agreements (the \"Agreements\") with IFC (a member of the World Bank Group) and Rand Merchant Bank (\"RMB\"), a division of FirstRand Bank Limited, (together the \"Lenders\") with regards to the new secured debt facilities of approximately US$78 million.\n \nThe Agreements provide Petra with a US$40 million loan from IFC and a US$38.7 million (ZAR300 million) loan from RMB as well as the extension of the Company's existing US$12.9 million (ZAR100 million) RMB group overdraft facility. Together with contributions from Petra's own treasury, the facilities will primarily finance the expansions of the Williamson mine in Tanzania and the Cullinan mine in South Africa. In addition, the facilities will be applied to general Group working capital needs and, immediately after completion, settlement of the outstanding US$31 million loan due to Al Rajhi Holdings W. L. L. (the \"Al Rajhi Loan\"), thereby removing this short term debt obligation from Petra's balance sheet. \n \nEach of the loan facilities under the Agreements is interdependent and completion of the Agreements, enabling Petra to draw down on the facilities, is conditional upon, inter alia, certain conditions precedent being satisfied. The principal conditions precedent relate to the perfection of security over the Group's assets, the execution of the relevant documentation to ensure interdependence of the Agreements, consents required from the Tanzanian Government and the South African Reserve Bank as well as the irrevocable instruction to repay the Al Rajhi Loan. Petra expects to have met all of the conditions precedent before the end of October. The Agreements contain standard events of default and warranties for facilities of this size and nature. \n \nThe remaining material details of the debt facilities were set out in the Company's announcement of 2 June 2010.\n \n \nJohan Dippenaar, Petra's CEO, comment...