MIRA INFORM
REPORT
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Report Date : |
30.06.2011 |
IDENTIFICATION DETAILS
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Name : |
LLD DIAMONDS LTD. |
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Registered Office : |
23 Tuval Street, Diamond Exchange, Noam
Bldg., Ramat Gan 52522 |
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Country : |
Israel |
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Date of Incorporation : |
12.10.1997 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Miners, international manufacturers and
traders in diamonds, dealing as cutters, polishers, importers, exporters and marketers
of all sorts of diamonds for fine jewellery |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment
Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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Israel |
a2 |
a2 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name & address
LLD DIAM
Telephone 972
3 755 11 11
Fax 972 3 612 27 15
23 Tuval Street
Diamond Exchange, Noam Bldg.
RAMAT GAN 52522
ISRAEL
HISTORY
& LEGAL FORMATION
A private limited company, incorporated as per
file No. 51-254128-5 on the 12.10.1997, continuing activities founded years
earlier.
SHARE
CAPITAL
Authorized share capital NIS 34,300.00, divided
into -
34,300
ordinary shares of NIS 1.00 each,
of which 104 shares amounting to NIS 104.00
were issued.
SHAREHOLDERS
Lev Leviev, 99.04%,
Moshe Leviev, 0.96%.
DIRECTORS
Moshe Leviev, General Manager (brother of Lev),
Zevulun Leviev.
BUSINESS
Miners, international manufacturers and traders
in diamonds, dealing as cutters, polishers, importers, exporters and marketers
of all sorts of diamonds for fine jewellery.
LEVIEV Group operates in all stages of the
diamonds chain – from mining and production to sales and marketing.
Dealing in cut and rough diamonds.
LEVIEV Group controls its own diamond mines,
some of which are located in Namibia and Angola. Most manufacturing and processing
is abroad, imported to Israel either as rough for sale to other dealers or as
cut diamonds for sale and export.
Diamonds and jewellery are sold also via the
Group’s chain of fancy stores around the world.
Operating from owned premises, in 23 Tuval
Street (also referred to as 52 Bezalel Street), Noam Building (12th
& 9th floors – subject’s shareholders own and occupies the
entire floors), Diamond Exchange, Ramat Gan.
Group also operating from mines, plants and
offices in South Africa, Namibia and Angola, polishing plants in India and Far
East and branches in Antwerp, New York, London, Moscow, Rome, China/ Hong Kong,
India and Dubai/ UAE.
Having 100 employees in Israel (similar to
2010), as well as hundreds of employees serving the LLD Group worldwide (couple
of hundreds in Israel).
MEANS
Financial data not forthcoming, however subject
is known to be financially strong and solid.
Subject was hit by the severe depression in the
diamond industry which erupted in the last third of 2008 and lasted throughout
2009. Like the diamond industry, the situation improved in 2010 (see also
CHARACTER).
According to media reports, following the
crisis subject’s bankers asked in the beginning of 2009 from subject to lower
its credit exposure and Mr. Leviev fueled NIS 400 million and subject was left
with US$ 800 million debt to its banks.
Sources in the branch estimated Lebiev’s
diamond business at US$ 2 – 4 billion.
There are 8 charges for unlimited amounts
registered on the company's assets, in favor of Union Bank of Israel Ltd.,
Israel Discount Bank Ltd., Bank Leumi Le’Israel Ltd. and Mizrahi Tefahot
Bank Ltd.
ANNUAL
SALES
According to the data published by the Israel Supervisor on Diamonds in
the Ministry of Industry & Trade, export of polished diamonds by
subject (actual overall sales presumed to be higher, as there are local sales
of polished diamonds and may have sales of rough diamonds as well), were as
follows:
2005 sales were US$ 601,000,000.
2006 sales were US$ 553,000,000.
2007 sales were US$ 522,000,000.
2008 sales were US$ 417,000,000.
2009 sales were US$ 241,000,000.
2010 sales were US$ 366,000,000.
LEVIEV Group whole diamond and jewelry business
estimated at US$ 3 billion per year.
OTHER COMPANIES
AFRICA ISRAEL INVESTMENTS LTD., Leviev holds 47.2%, a large holding
company with many holdings in Israel and overseas in various fields (see more
CHARACTER). Current market value US$ 855.3 million.
MEMORAND HOLDINGS & INVESTMENTS LTD.,
holding company via which Lev Leviev holds AFRICA ISRAEL Group.
AURAMINE, owns and develops gold mines in
Russia (extracted 2 million tons of gold in 2008)
SAMICOR, diamond extracting from the Angola’s
Sea.
DIOMONTE FINANCING, 18%, Angola, worlds 4th
largest diamond mine (“Katoka”),
NAMCO, diamond mines in Namibia and South
Africa.
MIUZ, Russia, design, manufacture and sale of
jewelries, operating via 160 chain stores, mainly in Russia, CIS and Eastern
Europe countries, estimated annual sales US$ 150 million.
OPEN JOINT STOCK COMPANY MOSCOW JEWELRY
FACTORY, Russia.
S.H.G., LEVIEV Group is a partner in gold and
metals mining in Kyrgyzstan.
BANKERS
Main branches:
Union Bank of Israel Ltd., Ramat Gan Branch (062),
Ramat Gan.
Bank Hapoalim Ltd., Yahalom Branch (No. 537), Ramat Gan.
Also working with:
Israel Discount Bank Ltd., Diamond Exchange
Branch (No. 080), Ramat Gan. Mizrahi Tefahot Bank Ltd., Diamond Exchange
Business Center Branch (No. 466), Ramat Gan.
CHARACTER
AND REPUTATION
Nothing unfavorable learned.
Lev Leviev is a well-known veteran diamond dealer and is considered the
world’s largest private diamond dealer with worldwide reputation. His own
personal wealth is estimated in 2009 at NIS 6.5 billion, making him among the
richest in the country. In Israel, Leviev has been one of the leading and most
influential business figures, via his AFRICA ISRAEL Group. Despite the hit in
the real estate and diamond businesses due to the severe crisis (see below),
thanks to its reputation and the fact it deals in all the diamond sector chain,
LEVIEV Group managed to cross over the crisis (according to sources in the
diamond branch subject met all liabilities promptly, enjoying the fact that
both customers and suppliers want to work with subject). As the markets
recovered (in the diamond sector and generally) in 2010, Group’s financial
status improved also.
In the past Leviev was a DE BEERS sightholder, however following
continuous conflicts he departed and became the largest independent cutter and
processor of diamonds in the world, and the main source of rough diamonds,
challenging the long standing hegemony of DE BEERS and revolutionized the
sector. Mr. Leviev controls many other international companies in the diamond
sector, among them are ASCORP, RUIS DIAM
During 2004 and 2005 Leviev opened, jointly with the local authorities,
2 major plants for diamonds polishing in Namibia and in Angola. The one in
Luanda, Angola, is the largest of its kind in Africa.
Born in Tashkent, Uzbekistan, Leviev is also strongly involved in the
Russian diamond industry and trade.
For many years, subject has been the leading largest diamond company in
Israel, most of the years by far largest than others. To-date it is still the
largest (No.
In 1996 Lev Leviev took over control in AFRICA ISRAEL INVESTMENTS LTD.,
publicly traded on the Tel Aviv Stock Exchange, land developers, building
contractors, and also managing and dealing, through subsidiaries, yielding
properties, hotels and resorts, industries, commerce and agencies. AFRICA
ISRAEL Group (AFI) has been one of the largest concerns in Israel. Other public
companies in the AFI Group are also traded on stock exchanges in Israel and
abroad. AFI has been adversely hit by the deep crisis in world financial and
real estate markets, mainly due to its real estate holdings in Russia and the
USA, accumulating huge losses -current debt in total of NIS
8 billion to the bonds holders and banks. The huge leverage AFI used to finance the
purchasing, mainly by raising bonds through the public, led to its announcement
by the end of August 2009 that it seeks arrangement with its bonds holders. After objections of bond holders, in December 2009 an agreement was signed
between AFI and its the Institutional Investors (who hold most of the bonds) and
bond holders in volume of NIS 7.45 billion, according to which some of the debt
were erased, a re-schedule for payments set, Leviev fuel his own capital (NIS
750 million) and his controlling share was decreased (from 75% to 47%
currently).
AFI situation improved significantly as a
result of the debt arrangement, as well as the recovery in global markets
(including real estate markets, notable Russia).
During 2010 and 2011 local diamond companies have been recovering from
one of the worst depressions in the global diamond sector due to the severe
economic crisis in global markets that erupted in September 2008. The diamond
sector experienced almost an entire freeze and collapse in sales of about 70%
in the peak of the crisis and 2009 export diamonds shrank by some 40%. Only
since mid
According to the President of the Israeli Diamonds Association, local
diamond sector in general managed to cross the crisis, despite the sheer
difficulties, including the fact that local banks contracted credit given to
local diamond firms. The President said that trade in the sector rolls annual
turnover of US$ 25 billion while total debt to the banks stands on US$ 1.5
billion, down from US$ 2.4 billion in the eve of the crisis. The Ministry for
Industry & Trade also assisted the local diamond exporters by providing
bank guarantees in total scope of NIS 1 billion.
Overall in 2010, export (net) of polished diamonds was US$ 5,832 million,
representing 48% increase from 2009 (when it noted 37% decrease from 2008, also
much less than
In the 1st quarter of 2011, 45.7% increase was noted
comparing to the parallel period in 2010 with export of polished diamonds of
US$2,123 million. Export of rough diamonds also noted 39.6% rise, reaching US$
1,158 million.
Import of rough diamonds (net) in 2010 grew by 51% to US$ 3,755 million
(30% rise in karat terms) compared with 2009, and by 24.9% in 2011 1stQ
(compared to 2010 1stQ), summing up to US$1,144 million. Import of polished
diamonds (net) saw 68% rise in 2010 reaching US$ 4,218 million (39% rise in
karat terms), and 48.5% rise in 2011 1stQ
(US$ 1,234 million).
In terms of target export (polished diamonds) countries, overall in
2010 the USA returned to be main destination, with 41% of total export (45% in 2011 1stQ). This comes
after earlier in 2010, for the first time Far East markets became Israel’s
diamond industry’s main target, with sales to Hong Kong being close to these of
the USA, to whom sales decreased dramatically in view of the severe economic
crisis (traditionally sales to the USA comprised some 60%-65% of total export).
In 2010 and early 2011, export to Hong Kong comprised around 26% of sales.
Other main target countries include Belgium, India, Switzerland and China.
In February 2009, Israel was ranked as the world’s largest exporter of
cut diamonds, followed by India, Belgium and South Africa.
SUMMARY
Good for trade engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.44.94 |
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UK Pound |
1 |
Rs.71.91 |
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Euro |
1 |
Rs.64.60 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.