(IDEX Online) - With financing in the diamond industry increasingly tight, Russian banks could step in to inject some much needed funds into the market.
Eximbank of Russia, which is part of the Russian Export Center Group, has issued its first loan to a diamond company. The loan agreement, which was underwritten by Exiar, provides for a 24-month revolving credit line in euros to Belgian company Dali Diamond.
The loan was for financing rough diamond purchases from Alrosa and was used during Alrosa's January trading session.
In a release, Alrosa said the terms of financing are among the best in the industry today - both with regard to rates and deferred payments to the bank, although no further details were given.
"This transaction marked the beginning of cooperation between Eximbank of Russia and EXIAR with the diamond industry and...Dali Diamonds," said Nikita Gusakov, senior vice president of the REC Group.
"It is a new source of funds in our industry, and we hope that such form[s] of cooperation will work out," said Alrosa deputy CEO Evgeny Agureev. "Now, when we often hear that sources of financing in the industry are cut down and key players have decided to withdraw from the sector or are considering such an option, the actual financing that took place is encouraging and is a milestone for the whole diamond market."