Under Equity Investment, the Bank primarily finances investments by taking up shareholding in them. UDB recovers its investment through dividends, revenue sharing, share value appreciation, and other means as prescribed in the investment agreements. The entities must meet the general eligibility criteria of the Bank, which can be accessed at www.udbl.co.ug
Product Purpose
This product is designed for innovative entities with high growth potential and the capacity to generate significant socio-economic impact but which are financially constrained with limited access to other sources of capital.
Asset types Financed
- UDB Takes not more than 25% of shareholding.
- UDB may employ other quasi-equity instruments as applicable.
- The minimum investment is USD 100,000 or UGX equivalent.
Tenure
UDB will be a shareholder for a maximum of 10 years. Terms and conditions of exit after this period will be spelled out in the investment agreements.
