As banks flee diamond trading, a startup plans to fill the gap

As major banks abandon the diamond trading world, one new lender is preparing to jump in. Dfin, a London-based corporate finance firm that specializes in the diamond sector, plans to lend $250-million to diamond polishers, cutters and traders -- known in the industry as the midstream -- over the next two years, according to Dfin pitch documents seen by Bloomberg News. Within the next four years, it aims to expand lending to about $375-million, the documents show.