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Asset Finance

Asset Finance

The Bank facilitates acquisition of qualifying assets that aid production and/ or value addition in key sectors. The asset is the primary security for the financing.

UDB undertakes to meet 80% of the asset cost and the borrower contributes 20%. The borrower pays back over an agreeable period of time, ranging from 3 to 8 years.  A borrower can provide additional security as an alternative to the 20% contribution. This is evaluated on a case by case basis.

Key Features

  • Funds can be accessed in local currency and USD
  • Up to 8 years repayment period
  • Up to 3 years grace period
  • Competitive interest rates
  • Attractive repayment terms
  • Financial and sector-based advisory services

Eligibility criteria

Businesses that have asset requirements and meet the following criteria are eligible for funding under this facility.
Legal Form: Applicants must be incorporated entities
Exposure Limits: The project must have an equity contribution of 60% of the total project cost if it is a start-up and 40% if it is a going concern
Collateral: The financed asset serves as primary security.

Other Requirements:

A grace period may be given depending on the asset procurement process. Its length will be determined by the implementation schedule and the project cash flow timelines.

Consultation & Enquiries

UDB welcomes and encourages projects sponsors to contact the Bank after reading this information, for preliminary discussions before submitting their applications.

 

 

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