The new placement of Euro-Commercial Paper (ECP) is the fourth transaction of arranging ECP issue for ALROSA. The interest rate on this deal is significantly lower in comparison to previous issues. The maturity of ECP is 1 year.
ECP is one of the instruments for refinancing short-term loans enabling to draw big funds at acceptable rates. The comparative advantage of this instrument is that its issue can be arranged in several days, which makes issuers regard ECP as an alternative for bank loans.
Andrey Solovyev, Global Head of Debt Capital Markets at VTB Capital, said “The fourth ECP ALROSA issue exceeds the previous issues in terms of the volume, with the interest rate being at the lowest level. Investors see positive changes in the issuer’s business and are willing to purchase its debt instruments. Furthermore, the company has a positive credit history, in particular in international capital markets. We are ready to further co-operate with ALROSA.”
Head of Press