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Finance

Corporate finance – loans, equity, mezzanine finance

Long-term loans

  • Currency: Euro or US Dollar, in certain cases local currency
  • Term: generally between 4 and 10 years
  • Collateral: usually as the company’s fixed assets in the country of investment
  • Interest rate: fixed or variable, market-oriented depending on project and country risks
  • Structuring: tailor-made and according to the customer’s requirements

Equity investments

  • Equity participation in the company in the country of investment
  • As a rule with a minority stake
  • Variable structuring of risk components

Mezzanine finance

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

Business Support Services (BSS)

What is supported?

  • Non-repayable co-financing for projects aiming to improve companies’ performance, growth, and to enhance sustainability with respect to commercial, social and environmental best practices

What does DEG offer?

  • Conceptual and financial assistance,corporate governance, risk/ social/ environmental management, strategy, resource and energy efficiency, training of staff and suppliers

Who can participate?

  • Prospective and existing customers

Upscaling Programme

What is supported?

  • DEG finances investments of SMEs to scale up innovative business models
  • Companies between microfinancing and traditional financing

What does DEG offer?

  • Funding of 500,000 EUR, max. 50% of total investment volume
  • Private companies must contribute a substantial share of equity (min. 25%)
  • DEG’s funds must be repaid in the event of success of the investment

Who can participate?

  • Early-stage SMEs registered in a developing or emerging market
  • Local subsidiaries of German or European companies

How to apply?

  • Proposals to DEG at any time
Project partners 
  • PV Energie, DEG
Objectives
  • Provide green energy/ low-cost solar power to local companies in the Philippines

Co-financing of feasibility studies

What is supported?

  • DEG co-finances feasibility studies
  • Planned investment must have development relevance

What does DEG offer?

  • DEG provides max. 50% of the costs for each feasibility study < 200,000 EUR
  • Proposing company covers min. 50% of the costs for the study

Who can participate?

  • German and other European SMEs with an annual turnover < 500 million EUR
  • Proposing company financially capable to carry out planned investment

How to apply?

  • Companies can submit their proposals to DEG at any time

German Desks

What do the German Desks offer?

  • Close link between local banks, the local business community, the German Chambers of Commerce abroad and DEG’s representative office on the ground
  • German Desks help to bridge cultural and language gaps
  • Serve as a bridge for financing solutions
  • Setting up accounts, services for financing trade & transaction banking, credit lines/ investment financing for local companies
  • German Desks in Lagos/ Nigeria, Nairobi/ Kenya, Dhaka/ Bangladesh, Jakarta/ Indonesia and Lima/ Peru

https://www.deginvest.de

Support & Advisory Services