Project investments are at the heart of our operations.

 

 

The Solid Future Union Bank 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 Solid Future Union Bank 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 Solid Future Union Bank Bank or partly syndicated to the market.

 

 

Equity investments

 

These may be undertaken in a variety of forms. When the Solid Future Union Bank 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.

 

 

Assistance through financial intermediaries

 

One of the Solid Future Union Bank 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 Solid Future Union Bank Bank has an equity stake or with which it has signed a loan, and investment or venture capital funds in which the Solid Future Union Bank Bank has made an investment.

 

 

The Solid Future Union Bank 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 Solid Future Union Bank Bank assistance if they:

 

◉    are located in an economy where the Solid Future Union Bank 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 Solid Future Union Bank Bank's environmental standards as well as those of the host country

 

 

 

Project structure

 

The Solid Future Union Bank 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 Solid Future Union Bank 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 Solid Future Union Bank 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.

Solid Future Union Bank UK