Barclays gets P1.35bn loan from U.S govt
Pauline Dikuelo | Tuesday July 26, 2016 18:00
The guaranteed agreement is part of a $250 million (P2.7bn) Overseas Private Investment Corporation (OPIC) loan guarantee programme to Lazare Kaplan International (LKI) through its subsidiary Botswana Finance LLC, with Barclays Bank of Botswana being the first lender in the programme.
Speaking at the signing, Barclays Bank of Botswana managing director, Reinette van der Merwe said the partnership recognises OPIC and the bank’s commitment to sustain the diamond industry.
“Diamonds have transformed Botswana’s economy from the poorest country in the world before independence to one of the fastest growing economies. Diamonds are at the heart of what Botswana has become and through this loan, it will be easier and more efficient for the local cutting and polishing facilities to borrow money locally,” she said.
In addition she said the project would add value to the supply chain in Botswana by creating employment opportunities and grow the sector.
For his part, OPIC vice president for small and medium sized enterprise finance, James Polan said the project will provide critical support to an industry that is central to Botswana’s economy and a key source of job creation.
“Bringing the larger supply chain into Botswana will have a huge impact in local communities across the country,” he said.
LKI president, Leon Tempelsman commended Barclays Bank and OPIC for showing commitment to the next stage of development and diversification of the economy of Botswana.
“We are honoured to be associated in this undertaking with partners as strong as Barclays and OPIC, who not only hold the highest standing in capital markets but share our vision of the diamond industry, one which supports constructive economic growth in the countries and communities where it operates, and adheres to the utmost standards of accountability and integrity,” said Tempelsman.
The OPIC project aims to facilitate further lending to diamond manufacturing and polishing companies with operations in Botswana.
It is also expected to support economic diversification by providing cutting and polishing companies in Botswana with access to long-term financing as well as develop the country’s financial sector.
Investment, Trade and Industry assistant minister, Sadique Kebonang said despite the success that is visible in the cutting and polishing industry locally, funding has been a challenge, which has been compounded by the diamond market downturn.
“The situation has further been exacerbated by withdrawal of the major historical bank lenders in the industry. The revolving credit guarantee by OPIC is therefore timely and a welcome development,” he said.
In addition, he said the country is committed to the full responsible exploitation of the entire diamond pipeline from ‘mine to ring’.