De Beers sa (DBsa) announced recently that The De Beers Group of Companies, and its Black Economic Empowerment partner, Ponahalo Investments Proprietary Limited have concluded agreements with The Standard Bank of South Africa and Absa Bank Limited. “Standard Bank and Absa will directly refinance Ponahalo relating to a portion of the original acquisition cost of its 26% interest in De Beers Consolidated Mines Proprietary Limited over a funding period of seven years” the company stated.

De Beers will simultaneously refinance, on improved terms, a portion of the Ponahalo debt currently held by Standard Bank, and existing Ponahalo debt held by De Beers, both for a period of seven years. In total, Ponahalo has US$373 million of debt, of which 61% will be financed by De Beers, and 39% by Standard Bank/Absa.

“This refinancing will improve the long-term sustainability of Ponahalo and underpins De Beers’ commitment to the major capital investment at Venetia Mine to extend the life of South Africa’s largest diamond mine,” De Beers commented.

Note from De Beers: An exchange rate of  US$1:R11.00 has been used for the purposes of this announcement