Corporate financing

DEG offers financial solutions for corporates and promotional programmes supporting corporates. For instance, feasibility studies and various business support solutions can be developed with and co-financed by DEG.

Financing for corporates include long-term loans, equity capital, mezzanine finance and guarantees.

Further information: Homepage

 

Business Support Services (BSS)

Challenges of private businesses can often not be met by finance alone. To address customers’ specific needs, DEG - via its Business Support Services (BSS) - offers non-repayable co-financing for eligible projects that help existing or prospective customers to improve their performance, growth and developmental impact. Possible areas for BSS support are, for example, corporate governance, risk management, strategy, environmental and social management, resource and energy efficiency as well as training of staff or suppliers.

Further information: Homepage

 

Up-scaling programme

With the Up-scaling programme, DEG finances investments of small and medium enterprises (SMEs) that intend to scale up innovative business models with high developmental impact. The programme addresses companies whose financing needs lie somewhere between microfinancing and the traditional financing by commercial banks.

Eligible entities/businesses are early-stage SMEs which are registered in a developing country or emerging market. These may also be local subsidiaries of German or European companies.

DEG provides funding of 500.000 €, which constitutes a maximum of 50% of the total investment volume. Private sponsors must contribute a substantial share of equity (at least 25%). DEG’s funds must be repaid in the event of success of the investment (depending on pre-defined financial criteria such as cash flow, revenue or profit).

The programme addresses companies that fulfil the following requirements:

  • The company employs an innovative and scalable business approach with a high developmental impact.
  • The company is operational and a pilot phase has already been completed including proof of concept with regards to technology and business model at local level.
  • The planned investment generates positive returns (as outlined by a comprehensive business plan and financial projections).
  • The company shows high growth potential owing to the size of the market and the target group.
  • The company has the management capacity, human resources and know-how to substantially scale their activities.

Further information: Homepage

 

Financing of feasibility studies

DEG co-finances feasibility studies of German and other European companies aimed at laying the groundwork for developmentally sound investments.

Key requirements are:

  • The feasibility studies content is the preparation of a realistic investment project which should be plausible in terms of successful implementation and profitability.
  • The planned investment must have development relevance and dovetail with the overall concept for German development cooperation.
  • The costs of the study must be commensurate with the costs of the planned investment.
  • The study would not be carried out if public funding was not available due to the ensuing risks and costs.

Small and medium-sized companies located and operating within Germany and the European Union with an annual turnover of up to EUR 500 million can deliver their proposals to DEG. It is important that there is a firm investment intention which is subject to a successful outcome of the feasibility study, and that the proposing company is capable, on a professional level as well as financially, to utilize the results of the study and to carry out the planned investment.

DEG provides a maximum of 50% of the costs for each feasibility study, but in any case, not more than EUR 200,000. The proposing company bears a minimum of 50% of the costs for the study and is responsible for its orderly implementation.

DEG uses funds from the Federal Ministry for Economic Cooperation and Development (BMZ) for the feasibility studies.

Further information: Homepage

 

German desk – Financial Support and Solutions

Together with partner banks and the local German Chambers of Commerce, DEG is offering "German Desks". The service is available for SME German companies and their local trading partners. The needs of German firms and their local partners are handled at the office by a bank employee who operates in both languages and cultures.

The range of services extends from setting up accounts through services for financing trade and transaction banking, to credit lines or investment financing for local companies wishing to acquire German equipment, for example. In this way, companies can benefit from the combined network of the bank, the Chamber of Commerce and DEG.

So far, German Desks operate in Lagos/Nigeria, Nairobi/Kenya, Dhaka/Bangladesh Jakarta/Indonesia and in Lima/Peru.

Further information: Homepage

German Business Group Cambodia

#30 Preah Norodom (corner st. 148)
Bred Bank building 3rd floor
Khan Daun Penh, Phnom Penh, Cambodia
EMAIL: info@adw-cambodia.org

Founding member of
Eurocham Cambodia