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.
