This product is specifically designed for SMEs or other entities including startups constrained from accessing debt finance and in need of patient capital. The Bank invests by taking up shareholding in qualifying entities and divesting after a given time. UDB’s equity allows investees to crowd in other private capital if so required.
These may be start-ups or largescale projects with high growth potential and/or socio-economic impact but deemed too risky by traditional financiers.
UDB will be a shareholder for a maximum of 10 years.