DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH

P.O. Box 10 09 61
50449 Cologne
Germany
Tel: +49 221 49 86 0
Fax: +49 221 49 86 1290
Email: info@deginvest.de
www.deginvest.de

General Information

DEG, member of KfW Bankengruppe (KfW banking group), has been specialising in long-term project and corporate financing since 1962. As one of Europe’s largest development finance institutions, DEG structures and finances investments by private companies in Africa, Asia, Latin America as well as in Central and Eastern Europe.

DEG invests in profitable projects that contribute to sustainable development in all sectors of the economy, from agriculture to infrastructure and manufacturing to services. One focus is on investments in the financial sector in order to facilitate reliable access to investment capital for enterprises. DEG’s aim is to establish and expand private enterprise structures in developing and transition countries, and thus create the basis for sustainable economic growth and a lasting improvement in the living conditions of the local population.

To date, DEG has worked together with 1,662 private enterprises. With its financing commitments of more than EUR 11.4 billion, DEG has contributed to providing a total investment volume of EUR 77 billion.

Instruments

DEG offers equity participations and long term loans as well as guarantees and mezzanine finance for investments of private companies, i.e. investments in start-ups or subsidiaries as well as in joint ventures. The financings are tailor-made and designed in such a way that the risk involved is commensurate with the specifics of the respective project.

Equity

Equity participation in the project in the investment country, usually about 5-25%.
Minority stake, usually over a limited period. Variable arrangements of the risk components. In certain cases, voting rights and seat on the board of directors of the company.
Clearly defined exit strategies.

Mezzanine Finance

Project-specific arrangement.
Subordination.
Risk-oriented yield.
Conversion options.

Long-term Loans

EUR or USD, in specific cases also local currencies.
Term usually between four and ten years.
Interest rate fixed or variable; market oriented according to project and country risks.
Collateral security as fixed assets in the country of investment; project-specific arrangement.
DEG share of finance usually between 3 and 25 million euros.

Guarantees

Mobilization of long-term loans or bonds in local currency.
Reduced exchange-rate risk via loan repayment in local currency.
Risk sharing with local bank.