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PRODUCT OFFERINGS

Performance Guarantee

A guarantee to an employer to pay a certain amount of money as damages due to under-performance in terms of the contract or service level agreement between a contractor and an employer.

Suspensive Sale Agreement (Vehicle and Asset Finance)

Finance for the acquisition of a movable asset(s) for business purposes.

Term Loan

An advance to satisfy a client’s medium to long-term financial needs and is repayable within a specific period at specific pre-determined intervals.

Property Finance

Finance for the acquisition or construction of immovable properties or for making improvements to fixed commercial property against the security of a bond registered in favor of the Bank.

Property Development Finance

Finance for developing immovable property for the purpose of re-sale. Property Development Finance loans are short-term by nature.

Invoice Discounting

Advancement of capital to a borrower against due and payable invoices. Invoice discounting finance is solely intended for businesses whose customers are other businesses. Eligibility will greatly be determined based on the quality of the business relationships as well as the quality – and turnover – of the business itself. Invoices must be payable within 180 days. The amount of the loan will not exceed 80% of the invoice value.

 

EQUITY FINANCING

Equity Investments

The Development Bank also undertakes advancement of capital through investing in shares or other instruments with equity characteristics. The Bank will only take equity in strategic projects that are in line the Bank's priority sectors as determined from time to time.

Preference Share Agreement(s)

Preference share capital takes the form of elements of equity and debt funding.The Bank will consider preference shares with debt characteristics as those with equity characteristics.

General Loan Terms & Conditions

Eligibility

  • Economically and financially viable start-up business with potential for sustainability and job creation.
  • Expansion of an existing business.
  • Management buy-in, into an existing business.
  • Management buy-out (take-over) of a business.
  • Project finance
  • Asset finance ( as part of a business proposal)

Loan Amount

  • Minimum ( General): N$ 3000,000
  • Minimum ( Special Development Fund): N$ 150, 000
  • Maximum: Single Obligor Limit

General FAQ

Why does a 'development bank' finance private sector start-ups and expansions?

At DBN, we recognise that private sector businesses play a very important role in economic development. Private sector businesses have shown the ability

  • Create employment
  • Improve the quality of the workforce
  • Diversify the economy
  • Diversify ownership of equity
  • Assist in decentralisation
  • Produce substitutes for products and services that are currently sourced across borders
  • Develop infrastructure
  • Strengthen the base of fixed assets in the country.

Organisations with feasible business plans that create employment and satisfy a combination of the above requirements should contact DBN

Is a Black Economic Empowerment (BEE) component prerequisite?

BEE aims to redress the inequalities of the past by giving previously disadvantaged Namibian citizens economic opportunities previously not available to them. It includes measures such as equal employment opportunities, skills development, business ownership support, and preferential procurement.

BEE is not a prerequisite at DBN, as our portfolio of projects shows, but DBN considers diversification of ownership a critical factor in developing the economy.

DBN gives preference to loans which provide opportunities for formerly disadvantaged Namibian shareholders to participate in the day-to-day management of organisations, for instance management buy-outs.

Will DBN consider equity finance or shareholding?

Pure equity finance may be considered, subject to viable business plans and a contribution to development, but DBN prefers and encourages participation on the part of management.

Does the Bank finance infrastructure?

 DBN provides financing for public sector projects and private public partnerships. Major infrastructure projects are judged on clear long term viability, capacity to generate income and long term benefit to the economy.

Collateral

What collateral does DBN require?

DBN requires collateral. DBN views its request for security or collateral as an accountability measure, which extends to the Bank’s own accountability to the public in view of it being capitalised from national resources.

  • Financial instruments held by the applicant
  • Assets not related to the project
  • Assets acquired for the project
  • 3rd party guarantees
  • Cession of project income
  • Insurance policies
  • Fixed and movable assets
  • Assets acquired through DBN financing.

The level of collateral required is project-specific.

The Bank requires commitment from clients in order to secure its own sustainability. Although the DBN is sensitive to difficulties in providing collateral on the part of certain economic segments, the Bank does require commitment from clients. The intent is to develop a partnership with clients and instill a sense of accountability to the Bank.

Compliance with Financial Intelligence Act - (Act No. 13 of 2012)

DBN clients are required to provide the following details required in terms of Section 24 of the Financial Intelligence Act.

DBN requires collateral. DBN views its request for security or collateral as an accountability measure, which extends to the Bank’s own accountability to the public in view of it being capitalised from national resources.

1. The registered Office and Postal address of the Business

2. The physical location of the Business (street address)

3. The physical location of the Business (street address)

  • Full Name(s) and Surname
  • Identity and/or Passport Number
  • Postal Address
  • Street Address
  • Business Resolution
  • Company Registration documents

4. Details of persons holding more than 20% shares in the Business

  • Full Name(s) and Surname
  • Identity and/or Passport Number
  • Postal Address
  • Street Address
  • Copy of Share Certificate / Members Interest