Lucara Diamond Raises $350m in Senior Secured Bonds to Fund Karowe Underground Project Completion in Botswana
Canada-headquartered Lucara Diamond Corp has successfully closed a $350 million senior secured bond issuance, providing the financial certainty required to advance its Karowe Underground Project in Botswana through to completion.
The five-year bonds carry a fixed annual coupon rate of 12.5%, with interest payments scheduled on a quarterly basis.
Proceeds from the financing have been used to fully repay the company’s existing $220 million project finance facilities, streamlining Lucara’s capital structure while enhancing liquidity and financial flexibility.
The remaining funds will be allocated to establish a debt service reserve account covering approximately two years of interest payments, in addition to supporting the ongoing development of the Karowe underground expansion.
Chief Executive Officer William Lamb described the transaction as a pivotal milestone for the company.
“This financing significantly strengthens our balance sheet and provides the financial certainty required to advance the underground project through to completion,” he said.
Beyond the immediate funding, the bond structure provides additional strategic financing options, including the potential to raise a further $50 million through a tap issuance and the possibility of securing an additional $50 million revolving credit facility if required.
With the financing now secured, Lucara has established access to sufficient capital to complete the underground expansion of the Karowe mine, subject to project execution in line with the company’s updated feasibility study.
