The ODC seeks a $300 million credit facility from local banks to boost diamond purchases, said Finance Minister Peggy Serame. ODC, established in 2012 to sell diamonds independently of De Beers, currently gets 25% of its diamonds from Debswana, a partnership with Anglo American's De Beers.
A new 10-year agreement with De Beers will increase ODC’s share of Debswana's output from 30% initially to 50%. To manage a new $300 million facility after a $140 million one matured in 2023, ODC has appointed Standard Chartered Bank. The company is seeking approval for a $175 million government guarantee to support this credit.
The diamond market is down, with Debswana's sales falling 49% in the first half of the year. ODC halted rough sales last October to reduce inventory surplus. The industry is expected to recover by late 2024, and the credit facility would help ODC benefit from this rebound.