Loans

• Project finance loans: Loans are available for sovereign or non-sovereign risk, and greenfield or brownfield projects
  - Loan maturity period: Up to 10 years, though longer periods may be granted in exceptional circumstances
• Corporate loans: Offered to private entities, public/quasi-public institutions and/or agencies, and financial institutions
  - Amount: USD 3 million minimum, or equivalent in other currencies
  - Length: Up to 5 years; up to 7 years in well-justified cases
  - Loan types available: Investment loan, construction financing, mezzanine financing, financing of acquisitions and other businesses, and working capital loan
• Credit lines: Provides selected banks with short- to medium-term capital not available in the market and to encourage the establishment of long-term relationships between these banks and their clients, in particular for trade finance operations and provision of medium-term financing to SMEs
• - Only financial institutions authorized by BSTDB as financial intermediaries are eligible to participate as borrowers for on-lending
  - Financing is normally provided in the form of revolving funds, but may also be in the form of back-to-back facilities or bullet loans
  - Maturity period: 3–7 years

Equity

• BSTDB invests equity in private sector companies and financial institutions, and subscribes to both common and preferred shares equity
• Terms and conditions:
  - Position: Minority (i.e., 5%–25% of the entity’s share capital)
  - Average time for maintaining an equity investment: 5 years
  - Rate of return: Reflects the risk profile of the investment
  - Clearly defined exit strategy
• BSTDB does not seek an active role in the day-to-day management of the company

Guarantees

• Operations involving guarantees are appraised, processed, and supervised in the same manner as those involving direct loan extensions and are subject to the similar limits and requirements
• Guarantee fee pricing depends on the guarantee’s specific coverage and risks; other fees may consist of:
  - Front-end fees
  - Exposure and/or periodic guarantee fees
  - Commitment fee

Trade finance program

• Minimum amount: EUR 4 million
• Tenor length:
  - Short-term: 360 days
  - Medium/long-term: Up to 5 years (long-term facilities may be extended up to 10 years in exceptional circumstances)
• Fixed or floating interest rates, consisting of a base rate and a margin charged on the outstanding amount of the loan
• Fees and commissions: Vary depending on the projects
  - Guarantee fees will be charged as a percentage of the guarantee amount per annum and will vary depending on the risk involved

Other products

• BSTDB supports eligible SMEs with the following tools:
  - Credit guarantee funds
  - Microfinance
  - Venture capital
  - Leasing
  - Credit lines