Business
New IFC Revolving Credit Facility of US$25 million
New IFC Revolving Credit Facility of US$25 million.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n \nRNS Number : 8447G Petra Diamonds Limited 04 July 2012 \n \n\n \n \n\n\n\n\n4 July 2012\n\n\nLSE: PDL\n\n\n\n\n \n \nPetra Diamonds Limited \n(\"Petra\" or \"the Company\" or \"the Group\")\n \nNew IFC Revolving Credit Facility of US$25 million\n \n \nPetra Diamonds announces that its wholly owned subsidiary Finsch Diamond Mine (Pty) Limited (\"FDM\") has entered into a revolving credit facility agreement (the \"IFC Agreement\") with IFC (a member of the World Bank Group) with regards to a new revolving credit facility of US$25 million secured on the assets of FDM in respect of the Finsch diamond mine in South Africa (\"Finsch\") and the Company's interest in FDM.\n \nThe new facility has been put in place in addition to the ZAR300 million (approximately US$36.9 million) Rand Merchant Bank (\"RMB\", a division of FirstRand Bank Limited) revolving credit facility that was announced on 30 November 2011. On completion of the IFC Agreement, the ZAR300 million RMB facility will reduce to ZAR200 million (approximately US$24.6 million), so that the lenders together provide circa US$49.6 million in revolving credit facilities to Petra.\n \nThese IFC (US$25 million) and RMB (ZAR200 million) revolving credit facilities are in addition to the debt facilities of approximately US$76.9 million that were put in place in November 2010 with IFC and RMB (being U$40 million with IFC and approximately US$ 36.9 million (ZAR300 million) with RMB) (\"the IFC and RMB 2010 Debt Facilities\"). Other than the revolving credit and debt facilities above, Petra also has working capital (overdraft) facilities with RMB/FirstRand Bank Limited of approximately US$20.9 million (ZAR170 million).\n \nPetra's total bank debt facilities now amount to approximately US$147.4 million. As at the date of this announcement, Petra has drawn down US$36.5 million of the IFC 2010 Debt Facility and approximately US$32.9 million (ZAR267.1 million) of the RMB 2010 Debt Facility. All other facilities remain undrawn, leaving approximately US$78 million available.\n \nGiven the lead times between the Group's now larger diamond tenders (post the acquisition of the Finsch mine) and the volatility experienced over the last 12 months of both the Rand and diamond prices, these new revolving credit facil...