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Our solutions for financial institutions

Whether you are a bank, an insurance company or a specialist finance institution operating in a developing or emerging-market country, you need a reliable financing partner with extensive expertise and an excellent network. We offer a consistent package of services.

We provide you with long-term financing and offer promotional programmes as well as work out a carefully planned solution that is commensurate with possible risks. In doing so, we react flexibly to your interests. We are at your side and advise you competently while working out your own financial solutions. As our customer, you benefit from our proximity to markets, our network and 14 locations worldwide.

Customer comments

Say Sony, Vize-Präsident des Mikofinanzinstituts PRASAC, Kambodscha

"With the long-term loan that we got from DEG, we are able to provide financial solutions to Micro, Small and Medium Enterprises."

Say Sony, Senior Vice President of the Cambodian microfinance institution PRASAC

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Financing for financial institutions

Long-term loans

As we finance banks and specialist institutions, we promote credit lines for microbusinesses, small and medium-sized enterprises as well as investments in energy performance. We also offer our services to lease companies.

Acting as arranger for syndicated financings, we are able to mobilise further financing partners and offer a joint financial package.

What we offer:

• Interest rate: fixed or variable, market-oriented according to project and country risks

• Term: generally between 4 and 7 years, but also longer

• Currency: euro or US dollar, in certain cases local currency

• Structuring: tailor-made and in compliance with your needs

Equity Capital

We also provide equity capital to support your growth. As a minority shareholder, we provide a positive impetus to develop your company and enhance your reputation. Finance institutions, supervisory authorities and rating agencies regard our presence as positive.

What we offer:

• Equity participation in the company in the investment country

• As a rule with a minority stake

• Variable arrangement of the risk components

• In certain cases, voting rights and seat on the supervisory board of the company

• Clearly defined exit strategies

Mezzanine finance

We are able to offer to you long-term finance with our subordinated loans. This way, you can refinance long-term local business at matching maturities. In addition, mezzanine finance is often recognised by the regulatory authorities as a form of capital – our DEG financing thus strengthens your equity capital base.

What we offer:

• Financing form between equity capital and third-party capital

• Project-specific arrangement

• Subordinated security

• Term: generally 10 years, but also longer

• Risk-commensurate return

• If needed, conversion option into equity

Promotional programmes for financial institutions

Besides long-term financing, we offer promotional programmes to support financial institutions in a targeted way. Thus we can co-finance various business support solutions – for instance in the area of risk and liquidity management. And we also advise our customers in expanding their SME business or establishing environmental and social management systems.

Examples

Promoting small and medium-sized enterprises

The Ghanaian Fidelity Bank offers financial services to small and medium-sized enterprises. In 2014, DEG arranged a long-term loan for the bank totalling USD 60 million, and is thus contributing to Fidelity Bank's expansion of its SME business.

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Sustainable financial services for SMEs in Sri Lanka

In order to be able to develop, local SMEs in Sri Lanka need reliable access to long-term loans. The Hatton National Bank makes capital available to local SME customers. The commercial bank has been a customer of DEG’s for three years.

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Contact

DEG

Kämmergasse 22

50676 Cologne

Germany

Phone

+49 (0) 2214986-0

Fax

+49 (0) 2214986-1290

eMail

info@deginvest.de
Our partner countries

DEG finances only in emerging and developing countries. These are regularly defined in the OECD Development Committee (DAC). The current DAC list with our partner countries can be found here.

DAC list