Banking: Finance plus advice

Whether you are a bank, an insurance company or a specialist finance institution operating in a developing or emerging-market country, you benefit from a professional and reliable financing partner with extensive expertise and an excellent network. We offer service packages that are tailored to meet your needs.

We provide long-term financing and offer comprehensive advisory services as well as work out carefully planned solutions with you. We are at your side and advise you competently while further developing your forward-looking offers and financial services. As our customer, you benefit from our considerable expertise, our international network and 19 locations worldwide.

DEG customer comments

We have a strong partnership with DEG. Together we support local Nigerian SMEs and German businesses coming and willing to invest in Nigeria.

Herbert Wigwe (In Memoriam), Group Managing Director of Access Bank in Nigeria

What we offer

Financing

We provide tailored financing solutions to our customers in the form of long-term loans, equity investments and mezzanine finance. We can also mobilise and arrange larger volumes for our customers by getting additional private investors on board.

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.

With our loans for banks and specialist institutions, we enable increased lending to, for example, 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.

At a glance:

• 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 local currencies

• Structuring: according to the customer’s requirements

We can 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.

At a glance:

• Equity participation in the company in the country of investment

• As a rule with a minority stake

• Variable structuring of risk components

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

With our subordinated loans we are able to offer you very long-term financing. 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 financing thus strengthens your equity capital base.

At a glance:

• 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

Advice plus support

Our services also include promotional programmes, enabling us to support you in a targeted way. We can offer and co-finance various Business Support Services – for example in ESG or risk management. What’s more, we also advise our bank customers on expanding their SME business or other business lines with potential.

We offer a variety of Business Support Services in connection with planned or existing financings through DEG. If, for example, you want to encourage your employees to develop their skills or improve your risk management, DEG can bear part of the costs.

Common topics for Business Support Services:

Advising on environmental and social management in the financial sector

We support you in incorporating environmental and social risks more successfully into your investment decisions. DEG can bear a share of the costs, if, for example, you wish to implement a environmental and social management system which helps to identify and manage risks in these areas.

Corporate Governance Advisory Services

The Corporate Governance Advisory Services help you improve your company processes in terms of good governance. The programme especially targets companies that have experienced dynamic growth in the recent past.

SME advisory programme for banks

This two-phase advisory programme shows banks exactly how they can develop their SME business to reach more SME customers and improve their services. Together, we draw up a detailed roadmap aligned with your own needs. In doing this, we examine especially your development potential and earnings opportunities.

Your challenge

We also offer you support with other challenges and develop individually tailored solutions in partnership with you and your company.

DEG finances innovative pioneering investments of German and local finance institutions in developing countries that are in the start-up phase. Companies willing to invest in FinTech or GreenTech sectors of these countries can receive up to EUR 749,000 of co-financing, repayable on success.

Example: As a FinTech institution, you develop innovative mobile payment systems and therefore reach customers that do not have sufficient access to financial services via the usual financing institutions.

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.

Financial service provider for small and medium-sized enterprises in Kenya

Many Kenyan companies are unable to secure long-term loans. Together with Equity Bank Kenya, DEG is making it possible for small and medium-sized enterprises to make more investments.

DEG: successfully promoting private enterprises in developing countries for 60 years

Read press release

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Banking: Finance plus advice

DEG customer comments

We have a strong partnership with DEG. Together we support local Nigerian SMEs and German businesses coming and willing to invest in Nigeria.