Investment Financing Line
Introduction
- Structured as a medium- or long-term loan
- Intended to finance investment projects such as power plants, infrastructure projects, industrial projects, as well as acquisitions of other companies
- Expansion, renewal, and upgrading of production capacities to increase corporate output
- Business modernization and development projects, including activities aimed at improving overall performance, such as strategy development, resource management enhancement, and adoption of new technologies
- Promotion of innovation in the private sector by enabling investments in new technologies
- Financing up to 70% of eligible invoices (subject of financing)
Credit Type
Medium- and Long-Term Credit
Target Clients
Entreprises publiques et privées répondant aux critères d’éligibilité adoptés par la banque.
Context
The Bank offers financing lines to support investment projects in the Arab Maghreb Union States by providing dedicated funding tailored to investment needs.
The medium- and long-term loan is designed to finance:
- Investment Projects: Investment projects are a primary focus of medium- and long-term loans. These loans can be used to finance the creation or expansion of large-scale ventures such as power plants, infrastructure, industrial projects, or the acquisition of other companies.
- Expansion and Renewal of Productive Capacity and Equipment: Financing the expansion of productive capacity supports companies in scaling up operations and increasing output. Renewal refers to the modernization of machinery and equipment to meet current standards, improving efficiency and reducing operational costs.
- Business Modernization and Development Projects: These projects cover all initiatives aimed at enhancing overall performance, including the development of new strategies, improved resource management, and the adoption of new technologies.
Product Features
Objective :
- Support for Large-Scale Projects: Providing the necessary funding to implement major investment projects, thereby promoting growth and expansion.
- Enhancement of Production Capacity: Helping companies in increasing their production capabilities by financing equipment upgrades and facility expansions.
- Encouragement of Innovation and Development: Enabling enterprises to invest in research and development to introduce new products or improve services.
- Infrastructure Development: Supporting the financing of projects that enhance infrastructure, contributing to improved service delivery.
- Reduced Reliance on Short-Term Financing:
Offering flexible, long-term financing options to reduce the risks associated with short-term debt. - Achievement of Strategic Goals: Helping enterprises realize their strategic plans by facilitating access to the funding needed for project execution.
Financing Ratio:
- Maximum Financing Ratio: Up to 70% of the total cost of the investment program, including other external sources of financing.
Loan Term:
- Medium-Term Loan: From 3 to 5 years, with the possibility of granting a grace period of up to 1 year, depending on the specifics of the project.
- Long-Term Loan: 5 years or more, with the possibility of granting a grace period of up to 2 years, depending on the specifics of the project.
Interest and Profit Margin Payment Schedule:
Payment frequency is determined according to the type of financing granted (quarterly / semi-annually).
Principal Repayment Schedule:
In periodic installments.
Financial Terms:
Financial conditions are determined based on the bank’s pricing policy which includes:
- Interest Rate: The interest rate (fixed or variable) is set according to the nature of the project being financed.
- Applicable Fees and Reference Charges:
- Commitment Fee: A percentage of the total loan amount.
- Non-Utilization Fee: A percentage of the unused portion of the loan.
- Application Review Fee: A fixed lump sum.
Guarantees :
The bank reserves the right to request any guarantees it deems necessary as part of the credit risk assessment. The following list of potential guarantees is provided for illustrative purposes and is not exhaustive:
- Mortgage.
- Mortgage on the property to be financed or related to the financed project.
- Pledge of business assets.
- Equipment pledge.
- Risk insurance.
- Promissory notes.
- Personal guarantees from partners or shareholders…
Marketing Approach
- The Arab Maghreb Union’s States.
- Direct marketing.
- Digital marketing.
- Marketing through international and local financial institutions.