De Beers Announces New Loan Facility

De Beers has signed a new $2 billion multi-currency credit facility, the company announced Nov. 1.

The facility is split between an $800 million term loan, maturing in March 2015, and a $1.2 billion revolving credit facility, maturing in October 2016.

Proceeds will refinance De Beers’ existing loans, and will be used for general corporate purposes.

A company statement said it “is appreciative of the support it has received from its banking partners. With a long-term supply/demand differential, De Beers believes that the fundamentals of the diamond business are attractive, and that the company is well positioned to generate strong returns built on a sustainable model.”

Philippe Mellier, De Beers Group CEO, said in a statement: “With several large upstream projects underway, and exceptional growth in emerging consumer markets such as China and India, De Beers stands on the cusp of an exciting period of growth. Today’s announcement further ensures that De Beers has a capital structure that enables us to continue to create value for our shareholders.”

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