Finance and Advisory for Financial Institutions

DEG is a reliable, long-term partner for banks, insurances, specialist finance institutions and leasing companies in emerging markets.

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Why Work with DEG

Tailored Finance & Partnership
Wheter long-term loans, equity capital, or capital market instruments - we create tailored financing solutions that strengthen your balance sheet and enable sustainable growth.
Impact-Driven Growth
As a development finance institution, we enable banks to expand lending to local SMEs and underserved segments - driving financial inclusion, green finance and sustainable economic growth.
Global Network, Local Expertise
We are experts in emerging and developing markets. With an international presence and deep sector know-how, we connect you with global capital, partners and best practices.

We Offer Finance

DEG can invest in any emerging and developing market. The country list of recipients of the OECD Development Committee (DAC) can be found here.

Interest rate: fixed or variable, market-oriented depending on project and country risks
Term: generally between 4 and 7 years, also longer
Currency: EUR or USD, also selected local currencies
Financing volume: usually from USD 20 million
Structuring: according to the customer’s requirements

With our loans for banks and specialist institutions, we support increased lending - particularly with local small and medium-sized businesses - as well as investments in business lines with potential, such as green energy or gender finance.

As an arranger of syndicated finance, we get additional finance partners on board if required, enabling us to offer a combined financing package from a single source.

Learn More about Our Financing Options

Equity participation in the company in the country of investment
Investment volume: from USD 10 million
As a rule with a minority stake of up to 20%
Variable structuring of risk components
Generally, voting rights and seat on the company’s supervisory board

We also support your growth with equity capital. 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.

Learn More about Our Equity Investments

Private and public placements
Listed and unlisted transactions, listing, where applicable, on internationally recognised stock exchanges
Bond rating not obligatory
Term: generally between 3 and 7 years
Currency: EUR or USD
Investment volume: from EUR 25 million

We subscribe to long-term, sustainability-focused bonds from experienced and established financial institutions in emerging and developing countries, with a view to actively supporting you in achieving your objectives related to environmental and climate protection, gender equality and governance. As an anchor investor with a long-term outlook, we stabilise your bond issues and send positive signals to other investors.

Learn More about Our Bond Financing

Financing form between equity capital and debt capital
Project-specific structuring
Subordinated collateral
Term: generally 10 years, but also longer
Risk-appropriate return
Possibility of conversion to equity, if appropriate

With our subordinated loans we offer you long-term financing that enables you to refinance your long-term local business at matching maturities. In addition, mezzanine finance is often recognised by the regulatory authorities as a form of capital – our financing solution thus strengthens your equity capital base.

Get in Touch to Explore Mezzanine Options

Partnering with DEG to Advance Financial Inclusion

With the help of DEG, we aim to expand our lending business for women-led and women-owned SME to promote financial inclusion in Vietnam.

Pham Hong Hai, CEO at Orient Commercial Joint Stock Bank, Vietnam

Advisory Services and Support for Financial Institutions

In emerging economies, financial institutions make a major contribution to economic development by facilitating the sustainable, efficient and responsible allocation of capital. To provide the level of support our clients need to address the challenges they face, in addition to financing, we also provide specialised advisory services and support through our subsidiary DEG Impulse.

Business Support Services

Our Business Support Services (BSS) co-finance advisory services for high-impact investments. These include:

Improving the management of environmental and social risks in the existing portfolio and future investments
Developing climate-friendly financial products, e.g. green or blue loans
Digitalisation

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E-Learning Platform on Sustainability and Corporate Governance

Employees of financial institutions can use interactive courses offered by KfW and DEG to learn how to identify, avoid and manage environmental and social risks in line with international standards.

Visit the E-Learning Platform

Selected Investment Examples

Green loans for climate-friendly technologies

The Paraguayan bank Sudameris has launched a new product in cooperation with DEG: green loans. With this product, small and medium-sized enterprises can invest in the expansion of renewable energy or in resource-saving technologies.

Kenia, Unternehmer, Fintech, Finanzwesen

Empowering Growth for Kenyan SMEs

The partnership with DEG enables the Co-operative Bank of Kenya to provide effective support to Kenya's fast-growing small and medium-sized enterprises.