Legal Status

Private limited liability companies  and registered co-operatives

Borrowing Currency

Malawi Kwacha (MK)

Facility Limits

Fixed amounts ranging from K20 - K375 million.

Tenure

• Minimum of 2 years and maximum of 8 years repayment period after a moratorium.

Moratorium

• The moratorium period is aligned with the project rollout plan or gestation period.
• The moratorium can be on both principal and interest repayments or on principal repayments only with interest serviced on a monthly basis.
• The moratorium period shall be a maximum of 2 years.
• The source of the loan repayments shall be the project cash flows and cash flows from other businesses where applicable.

Pricing and Fee Structure

• Interest rates shall be negotiable and shall be a margin above the Reference Rate.
• The nature of the project, results of the risk assessment process and security provided shall determine the final interest margin.
• Arrangement fee of 1% of the entire credit line payable once off before disbursement of the loan.
• Appraisal fee of K250,000 payable once off before disbursement of the loan.
• Annual facility management fee of K150,000 (subject to annual review).

Amortization method

Reducing Balance

Repayment frequency

Loan repayments are aligned with the cash flow patterns as follows:

• Monthly repayment
• Quarterly repayment
• Bi-annual repayment
• One bullet payment

For Equity Financing

• The Bank does not hold controlling equity stake.
• The Bank agrees on an exit strategy and formula on inception.

Security

Security requirements vary from project to project depending on the project's assessed risk.

Disbursements of Loan Proceeds

• Disbursements of loan proceeds are made directly to suppliers of various goods and services where possible

• Other general terms and conditions will apply.