Equity investment is a mode of business financing where UDB provides capital or invests in a project in return for shareholding in the project on given terms. The project must fall within the Bank’s priority sectors.
Key Features
- UDB will take not more than 25% shareholding
- The minimum investment is USD 100,000 or UGX equivalent
- UDB recovers its investment through dividend, revenue sharing, share value appreciation and other means as may be prescribed in the investment agreements
- UDB will be a shareholder for a maximum of 10 years. Terms and conditions of exit after this period will be spelt out in the investment agreements
- Equity investment may be offered alongside debt (loan) in other financing arrangements
Eligibility
Legal Form: Applicants must be incorporated entities
Project stage: The project may be either a going concern or start-up. Regarding start-ups, preference will be given to innovative concepts deemed too risky for conventional financing but showing realistic prospects of profitability and positive socio-economic impact.
Consultation & Enquiries
UDB welcomes and encourages projects sponsors to contact the Bank after reading this information, for preliminary discussions before submitting their applications.
