Lending

Loans Syndication

  • DBG will developed a syndicated loans product to manage credit risk while supporting our clients’ financing needs.
  • Non-ECA cover – DBG will invest into the uncovered portion of an Export Credit Agency-backed transaction, to encourage the financial closure of the commercial tranche of the transaction.
  • Credit enhancement (only if competitive) with other DFIs and MDBs
  • First risk loss / subordinated facilities
  • Loan tenor extension – up to 20yrs
  • Guarantee products
  • Capital Payment suspension – due to the heavy upfront building cost required to kick start large infrastructure projects, only interest repayment are made due during build phase

Our lending offering will include products such as:

  • Refinancing of TermLoans
  • Term Loans to PLIs

Special Funds

  • To be provided as seed funding and technical support on project funds
  • Credit Guarantee Funds
  • Technology Development and Innovation Funds
  • Venture Capital Funds
  • Market Development Assistance Fund

Our Support Services

We understand that besides financial resources different entities or projects require technical assistance. Through our financial institutions and internationalpartners,we will work to provide themuch-needed technical assistance across all priority sector projects that we can identify as sustainable projects. When providing technical support, our objective is also to encourage investments and financing for project development in key socio-economic areas, startingwith theregional communities. We also seek to build a framework around our funding model to ensure we have the maximum impact for public and private sector funding. DBG will unlock public and private sector funding to direct assistance towards regional projects and businesses to ensure there is better due-diligence, proper market assessment, to ultimately develop sustainable businesses.

Role of Partner Development Finance Institutions (DFI’s) and commercial banks

We recognize that many projects without the right structured capital impedes growth, some projects fail to make it to a bankable stage, or fail due to budget overruns and lack of project preparation. Through our financial institutions and commercial banks we provide potential clients with capital instrumentsneeded to bridge financing gaps. DBG works with Development Finance Institutions (DFI’s) and commercial banks to attract long-term capital  to support under-resourced municipalities and the private sector. There is, on average, an eight to nine-year gap between project identification and implementation  execution and commercial operation. In order to shorten this time, the DBG ensures that projects are funded in the most cost-effective way possible, from conception to implementation.

Characteristics of a Business or Projects we support

The overall decision to proceed with a project is heavily reliant on economies of scale and the availability of finance. This process requires the correct characteristics from a client’s perspective, and the specialist skillset from our banking partners supported by our technical experts. Some of the factors that influence our decision making will include, sector objective, the stage of development, the risk of the project requested, the capital structure, and amongst others the quality or track record of developers.

Key evaluation points for DBG will involve:

  • Alignment to Mandate Requirements: Sectors, geography, national or regional priority projects, alignment with DBG’s SDGs.
  • Development impact: anticipated economic, climate, social impact and transformation results for Ghana.
  • Institutional capacity and scalability: Project sponsors with a track-record of previous successful and future financial capacity.
  • Support of the enabling environment: Government support and national priority; clear regulatory environment, exclusive development rights, fair.
  • Co-Investment Opportunities: entrepreneurs and project sponsor ability to have equity contributionand co-fund projects.
  • Local content and skill transfer requirement local content local raw material sourcing, services or technology should be considered in projects.
  • Investment Size: The project value must meet the minimum investment requirement of a company.
  • Compliance of with DBG’s funding requirements: request for funding required to follow the right process.

Fund Management

While development has been growing steadily in recent years, Ghana is still faced with a myriad of challenges in this area. As one of Ghana’s leading development finance institutions, it is our responsibility to promote inclusive and sustainable socio-economic development and growth. To achieve this, we also will raise funds on the continent and as well as internationally.

At DBG, it is our responsibility to promote inclusive and sustainable development and growth and we aim to deliver that socio-economic growth in a shared and equitable form for the country.

DBG seeks to be a trusted and respected partner in the global development finance arena, and as such we are poised to become an accredited fund manager for some of the large third-party concessional global funds with a focus on Africa. It is important to have a local partner when it comes to capital deployment and DBG will thus be able to provide our international fund managers a respected brand and platform to tap in the   development of Ghana. The Bank’s excellent governance, financial sustainability, and strengths in fund management position is a partner of choice in sub-Saharan Africa. Management of third-party funds enhances our development impact.

DBG will finance projects in across the various sectors: Water and Sanitation, Information and Communications Technology (ICT), Energy, Transport Logistics (Road, Rail, Ports), Health, Education (student housing), Housing, Bespoke Solutions. In addition to loan financing, DBG will develop bespoke products that support key initiatives in the country aimed at addressing market failure and benefiting socio-economic inclusivity.

Our Partners

The Development Bank Ghana Project is an initiative of the Government of Ghana, with co-finance and technical assistance from the Federal Ministry for Economic Cooperation and Development of Germany through KFW, a German state-owned development bank, the World Bank Group (WBG), the African Development Bank (AFDB) and the European Investment Bank (EIB).