Financing for infrastructure projects like servicing of land; installation of water, electricity, waste management, and roads; undertaken by Local Authorities as part of their programmes to upgrade and expand basic services to communities
Sector identification
• Municipalities: Part I and Part II
• Town Councils
• Village Councils
Eligibility
Minimum credit rating achieved as determined by DBN’s credit rating model that evaluates a Municipality or Council, taking into account its financial standing, management capabilities, governance practices and current debt position.
Financing options
• Direct loans.
• Subordinated debt/mezzanine financing.
• Participation in syndication facility (co-funding).
• Current minimum of N$ 3 million.
Security
Determined on a project by project basis, taking into account the credit rating score and risks identified.
Repayment period
Maximum 20 years (including grace period).
Interest rate
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Interest rates are determined on a project by project basis taking into account cost of capital to DBN, the Municipality or Council’s credit rating scores and risks identified; against which an interest rate is awarded based on the quality of securities offered.
Interest can be capitalised during the grace period.
Grace period
Tailored to the construction and ramp up of the project.
