The DBJ’s preferred modality for Direct Lending is through syndication or co-financing with AFIs, as well as foreign and local lending agencies/financiers. The Bank may however evaluate, on a case by case basis, requests for direct funding to viable development projects which demonstrate a net economic benefit to the country.
DBJ will lend to both public and private sector enterprises primarily through AFIs.
- TARGET SECTORS
The core terms of the facility to direct borrowers are as follows (subject to exceptional approval of variations to terms by the Board):
|Terms & Conditions||Description|
|Maximum loan amount per borrower||US$5,000,000.00 – representing a maximum of 70% of the total project cost.|
|Currency||United States Dollars|
|Interest Rate||4.5% per annum on the reducing balance payable monthly.|
|Tenor||Up to a maximum of 12 years with a moratorium of up to 18 months on principal and interest. Interest can accrue during the moratorium period and capitalized at the end of the moratorium period.|
|Minimum size of each facility||40,000 square feet or 800 seats|
|Types of projects to be financed||a) construction of new buildings for the specific purpose of use by high-end ICT/BPO/Knowledge Process Outsourcing activities;b) expansion and renovation of existing buildings for the specific purpose of ICT/BPO/KPO activities|
Funding will not be granted for the following purposes:
- Financing the acquisition of property (land or buildings) except in the case of existing ICT operations where the property will be significantly expanded as part of the project.
- Refinancing of existing debts.
To be eligible to access the ICTIL, the project promoter shall:
- Demonstrate ownership of the building which is to be renovated/retrofitted to house a contact centre, or of the property (Title, Vol /Fol #) upon which the facility will be constructed;
- Present a comprehensive business plan, which details the full scope of the project, including but not limited to the financing plan, funding sources, marketing plan, site analysis (geophysical and labour surveys), timetable for implementation and any other information deemed appropriate or necessary and requested by the DBJ at any time during the project appraisal process;
- Produce a copy of the Parish Council approval for the proposed construction;
- Have a demonstrable track record in business;
- Be recommended by JAMPRO as a suitable candidate to access this loan funding. The minimum capacity to be constructed per project under the ICTIL is 40,000 sq. ft. or a minimum of 800 seats.
The DBJ has adopted the tiered modeling which assesses a financial institution’s ability to be accredited as an AFI. Institutions interested in participating in the on-lending programme, may submit the following:
As at 31 March 2015 the total outstanding loan portfolio of the Bank stood at J$15,076 million, and was distributed as follows:
|Loans to NPCB||1,030,416,905||9.8%|
|Loans to AFIs||9,297,089,504||61.7%|
|Loans to MFIs||811,269,842||5.4%|
|Loans to Direct Clients||3,937,071,123||26.1%|