BSTDB Extends a USD 18.5 million Loan to ALROSA Co. ltd. (Russia)

Press Release | 09-Dec-2002

The Black Sea Trade and Development Bank (BSTDB) will make available a USD 18.5 million loan to ALROSA Co Ltd. (Russia) to support an investment program for rehabilitation of its mining production. The Loan has a maturity of 6 years and will facilitate purchases of equipment and services from Ukrainian mining machinery manufacturers to be used for expansion of and production at one of the mining complexes of ALROSA.

The facility is one of the BSTDB’s largest operations in Russia. It is in line with the dual mandate of the Bank to finance projects with strong development impact while fostering cooperation between the bank’s member countries. In particular, the project contributes to the reinforcement of business relations between the Russian mining sector and Ukrainian heavy machinery manufacturing. The investment program also carries a strong environmental impact.

ALROSA Co Ltd. is the major rough diamond exploration, mining and distribution company in the Russian Federation and one of the largest producers of diamonds internationally with 23% share in the world market and around USD 1.5 billion of annual sales.

Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. With an authorized capital of SDR 1 billion (approx. USD 1,3 billion), the Bank supports economic development and regional cooperation by providing financing, guarantees, and equity for projects in public and private sectors in its member countries. Since the commencement of operations in 1999, BSTDB's Board of Directors has approved about 50 operations totaling over USD 425 million.