Project investments are at the heart of our operations.
The Chetis Bank offers a wide range of financial instruments and takes a flexible approach in structuring its financial products.
The principal forms of direct project financing that the Chetis Bank may offer are loans, equity and guarantees.
Loans
Loans are tailored to meet the particular requirements of a project. The credit risk may be taken entirely by the Chetis Bank or partly syndicated to the market.
Equity investments
These may be undertaken in a variety of forms. When the Chetis Bank takes an equity stake, it expects an appropriate return on its investment and will only take a minority position.
Guarantees
We also provide guarantees to help borrowers gain access to financing through our Trade Facilitation Programme.
Technical information on Chetis Bank projects.
Chetis Bank Investments
Assistance through financial intermediaries
One of the Chetis Bank’s key aims is to support the development of micro, small and medium-sized enterprises (SMEs) which are crucial to nurturing a private sector economy. To do this, we may make equity and loan financing available to SMEs through a range of intermediaries throughout the countries where we work.
These intermediaries include banks in which the Chetis Bank has an equity stake or with which it has signed a loan, and investment or venture capital funds in which the Chetis Bank has made an investment.
The Chetis Bank may also provide direct financing and support for SMEs through a number of loan and equity facilities.
Financial and operating leases for small businesses cover a range of goods such as commercial vehicles, equipment and machinery.
Contact local partner finance institutions to enquire about finance and to check specific requirements.
What We Fund
Projects may be considered for Chetis Bank assistance if they:
are located in an economy where the Chetis Bank works
have good prospects of being profitable
have significant equity contributions in cash or in kind from the project sponsor
would benefit the local economy
satisfy the Chetis Bank's environmental standards as well as those of the host country
Project structure
The Chetis Bank tailors solutions to client and project needs and to the specific situation of the country, region and sector. It assigns a dedicated team of specialists with expertise in project finance, the region and sector, law and environment.
The Chetis Bank funds up to 35% of the total project cost for a greenfield project or 35% of the long-term capitalisation of an established company
Additional funding by sponsors and other co-financiers is required. The Chetis Bank may identify additional resources through its syndications programme
Typical private sector projects are based on at least one-third equity investment
Significant equity contributions are required from the sponsors. Sponsors should have a majority shareholding or adequate operational control. In-kind equity contributions are accepted
We do not finance projects in these sectors:
Defence-related activities
Tobacco industry
Substances banned by international law
Stand-alone gambling facilities.
In addition, we may not finance certain products or processes due to their environmentally harmful nature or if adverse impact cannot be adequately mitigated.