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Petra Diamonds Ltd on Friday reported an agreement in principle with its stakeholders for a solution to its refinancing, and launched a rights issue. The South Africa and Tanzania-focused diamond miner said the agreement followed a strategic internal restructuring programme to simplify and streamline the company’s business and operating model. Petra Diamonds said the refinancing includes a 10 for 17 rights issue of approximately £18.8 million, fully underwritten and committed by certain existing shareholders. This rights issue being made at a price of 16.5 pence per share. Shares in Petra Diamonds fell 6.7% to 18.00 pence on Friday afternoon in London. The refinancing also consists of an extension to the senior secured bank debt’s maturity date to December 2029 from January 2026 and the maturity date of the notes to March 2030 from March 2026. Petra Diamonds said the rights issue and the refinancing are conditional on the passing of the refinancing resolutions at the special general meeting set for November 6. Vivek Gadodia, the interim joint chief executive officer, said: ‘Today marks the final leg of Petra’s refinancing with the launch of the rights issue and the consent solicitation process to amend and extend the Notes. ‘Petra has undergone immense change over the past 18 months in order to become a streamlined business that is now positioned to deliver sustained value for its stakeholders. This has enabled us to refinance our debt with a fit-for-purpose solution that allows capital execution while providing the headroom and flexibility to weather the current market conditions. ‘I would like to once again thank our shareholders, noteholders and our senior lender for coming together in support of the company. This substantially strengthens our capital structure and allows us to focus on delivering on our business plan.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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