Petra Diamonds BBE partners refinance loans

Petra Diamonds's black economic empowerment (BEE) partners have been granted third party finance for loans that were originally financed by Petra for the acquisition of the partners' interests in the Finsch and Cullinan mines.

The repayment of the loans, worth $98m, will be used to strengthen Petra's balance sheet and to begin the payment of dividends for the current financial year.

Petra, which orginally financed the BEE partners' 26% share of each mine, is receiving the repayment around three to four years earlier than would have been the case.

The loans will be directly financed by FirstRand Bank Absa Corporate and Investment Banking.

Petra chief executive Johan Dippenaar said: "The re-financing of the BEE Partner loans is a validation by Absa and RMB of the quality of Petra's asset base, cashflows and management team.

"The repayment of these loans significantly strengthens the company's balance sheet, enhances flexibility and places Petra in a strong position financially."