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.
Welcome to the Exporting Source
Your one-stop resource for finding help to export to new customers, to learn about government export programs, to join export-promoting trade missions, to sign up for trade conferences and training, and to link to other exporting services. Whether you're an old hand at exporting or just getting started, the Exporting Source provides a place to locate foreign customers, export financing and foreign investment assistance.