OPIC and Standard Bank Group Announce $125 Million Loan Guaranty for Botswana's Local Cutting and Polishing Industry
September 26, 2018
(OPIC)
Loan to support economic expansion and job
creation
New York, NY / Gaborone, Botswana – Stanbic
Bank Botswana, a member of Standard Bank Group;
the Overseas Private Investment Corporation
(OPIC), the U.S. Government’s development
finance institution; and Botswana Finance LLC,
a subsidiary of Lazare Kaplan International
(LKI), today signed a $125 million loan
guaranty, which will encourage and support
lending to diamond manufacturers and polishing
companies while allowing the organizations to
share credit risk.
In keeping with Standard Bank’s objective of
driving growth in Africa, this loan guaranty
will help diversify Botswana’s economy, drive
the development of the local financial sector
and give local companies access to financing.
Stanbic Bank has been lending to diamond
beneficiation companies in Botswana for over
ten years and this facility will support and
allow us to expand the availability of
financing for the sector.
“With the support of OPIC financing, this
project will keep the value-adding process of
the diamond supply chain in Botswana, promoting
local job creation, diversifying economic
growth, and bringing global trade
opportunities,” said OPIC President and Chief
Executive Officer Ray W. Washburne who recently
visited the country. “The project will have a
significant impact in local communities and
further the country’s economic
development.”
Samuel Minta, acting Chief Executive Officer of
Stanbic Bank Botswana said, “We expect
continued growth in Botswana’s diamond
beneficiation to have positive residual effects
on several sectors, including electricity,
finance and business. We are proud that this
loan guaranty will play a strong role in the
continued economic growth of the country.”
Leon Tempelsman, President of LKI stated,
“Stanbic Bank Botswana and OPIC share our
vision of how the diamond industry can support
constructive economic growth in the countries
and communities where it operates. We commend
both OPIC and Stanbic Bank Botswana for their
commitment to the next stage of development and
diversification of the economy of Botswana.”
This is the second tranche of a $250 million
OPIC loan guaranty – the first of which was
fulfilled by Barclays Bank of Botswana in
2016.
Announced in July, OPIC’s Connect Africa
initiative seeks to invest $1 billion over
three years to projects that support
telecommunications and internet access, value
chains that connect producers of raw materials
to end users, and critical infrastructure, such
as roads, railways, ports, and airports.
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