(IDEX Online) - Stanbic Bank Botswana, a member of the Standard Bank Group, the American government's Overseas Private Investment Corporation (OPIC), and Botswana Finance LLC, a subsidiary of Lazare Kaplan International (LKI), have signed a $125 million loan guaranty.
The guaranty aims to encourage and support lending to diamond manufacturers and polishing companies while allowing organizations to share credit risk.
The guaranty is the second part of a $250 million OPIC loan guaranty, the first of which was fulfilled by Barclays Bank in 2016.
Stanbic Bank Botswana has been lending to diamond beneficiation companies in Botswana for over 10 years and the agreement will allow it to expand the availability of financing for the sector, it said in a statement.
Sameul Minta, acting CEO 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."
Leon Tempelsman, President of LKI, said: "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."
Photo caption: Standing from left: Maurice Tempelsman, LKI Chairman; Mokgweetsi Maisi, President of Botswana; David Newman, Botswana's ambassador to the US; Shepherd Aisam, head of Corporate & Investment Banking, Stanbic Bank Botswana. Seated from left: Leon Tempelsman, LKI President; Samuel Minta, CEO, Stanbic Bank Botswana; Ray Ashburne, President and CEO, OPIC.