* Alrosa to raise $1 bln in two tranches-source
* Proceeds to be used to finance deal with VTB (Releads, adds own source, detail)
MOSCOW, March 14 (Reuters) - Russian state-owned diamond miner Alrosa plans to raise $1 billion in two tranches of Eurocommercial paper issues (ECP), a banking source told Reuters, in order to buy oil and gas assets from state lender VTB.
The yield for nine-month paper worth $700 million was set at 4.125 percent, while 12 month bills worth $300 million was at 4.25 percent, the source added.
Goldman Sachs, UBS and VTB Capital are arranging the deal.
Alrosa plans to use proceeds from the ECP loans to finance a deal with the country's second largest lender VTB to buy back oil and gas assets Geotransgas and Urengoy for $1 billion. (Reporting by Katya Golubkova, Oxana Kobzeva, Polina Devitt; Editing by John Bowker)