Frequently Asked Questions and Answers.

What is the key role of the Uganda Development Bank?

The Uganda Development Bank Limited (UDBL) is a premier development financing institution whose main objective is to provide financial assistance to promote socio-economic development of the country.

What is the mission of the Bank?

"We aim to be a niche bank with tremendous growth potential providing quality banking solutions to our clients by forming a mutually beneficial relationship of trust and integrity. This, we achieve, through our supportive staff team committed to excellent and efficient service, thereby creating wealth for all our stakeholders who would be proud to be associated with us."

How does the Bank accomplish its overriding objective of promoting development?

The Bank offers a mix of financial products and services to viable projects/enterprises in the country. Our products range from Medium/Long Term Loans, Short-term Loans, Equity Investment, Trade Finance, Export Finance, Micro Finance Institutions Financing, Loan Syndication, Loan Guarantees, Property Managementand Assistance, among others. The Bank has over the years established itself as a major contributor in development financing. All the key economic sectors of the nation have, in one way or another benefited from the Bank's lending operations.

Where is UDBL located?

The Bank has its Head Office at Ruth Towers, Plot 15A Clement Hill Road, P.O. Box 7210 Kampala (Uganda)

What Investment Projects does UDBL consider for funding?

All viable projects in the country's key economic sectors are eligible candidates for UDBL financing. Emphasis is placed on projects, which have the capacity to spur more development. The key sectors which UDBL finances include agriculture, health, infrastructure, trade, tourism, education, export promotion, industrial development, manufacturing, and processing.

Where and how does the Bank raise funds?

UDBL finances most of its projects from its own resources. It also gets resources for on-lending to sub-borrowers from government and external lines of credit. The Bank also has established working relations with other local and external financial institutions for syndication and co-financing arrangements.

What is UDBL doing that cannot be done by other development banks in the country?
In a global village, you need as many actors as possible in all sectors of the economy to ensure fair pricing of financial products and quality of service to customers.

Are Environmental consideration made in considering the Loan Application?
The Credit Rating module used by the Bank places a high weight on environmental aspects in evaluating projects for possible UDBL assistance.  Prior to financing, all projects must meet the environmental requirements as specified from time to time by the National Environment Management Authority (NEMA).  The necessary Environment Impact Assessment (EIA) should have been made and a certificate of no objection obtained from NEMA prior to disbursement being made to the project.

What is UDBL's Investment Strategy

The Bank’s investment strategy is to have a mix in terms of sector exposure that minimizes risks to the Bank.  The Bank is positioning itself to start a commercial banking wing to mobilize local resources division sources.  The following are the main areas of the Bank’s operation
Commercial: -

• Export projects especially based on local raw materials
• Export of services
• Tourism covering tour operation, hotels and restaurants
• Agro-processing (crops, vegetables, milk, meat, fish, fruits etc.)
• Other manufacturing
• Educational institutions – expansion and rehabilitation
• Trading enterprises supporting agricultural operations i.e. suppliers and producers of agricultural and livestock inputs
• Mining
• Transport
• Commercial real estate development
• Health Services

Infrastructure: -

• Transport
• Energy – small scale hydro power generation and distribution
• Water provision
• Industrial Estates

Financing of the selected projects will be undertaken by way of:-
Term loans
Short term/working capital
Project related trade finance
Equities

New Products

The Bank is introducing the following new products:
Financing Micro Finance Institutions
Wholesale loans to one or two registered, well managed Micro Finance Institutions (MFI’s) for on-lending to micro and small enterprises who will not qualify for direct loans from UDBL.

Trade Finance
This product will benefit businesses that are not project based such as supply of inputs to agricultural and livestock enterprises.  This instrument covers loans granted against lien over goods held in commercial and bonded warehouses owned by the Bank, the client or the tax authority.
Agricultural Finance
The Bank will establish (subject to technical feasibility and financial viability) a special Department to provide finance for crop production and related services in selected areas of the country.  Services to be provided are:

• Land clearing and preparation
• Planting
• Provision of improved seeds and other inputs
• Where possible, appropriate irrigation technology
• Extension services
• Post-harvest management

The Bank will select the areas and approve the crops to be handled.  The client base will comprise farmers within economically viable distance operating within the selected area and operating on land owned or arranged by them.
The services will be provided to the cost of participating farmers and most likely recovered at harvest.