To support early-stage, privately funded commercially oriented microfinance institutions.
The Deutsche Bank Start-up Fund seeks to identify start-up microfinance institutions in underserved markets with strong management. It provides flexible financing to support portfolio growth, and works to build governance and financing capacity.
Direct loans, guarantees to local financial institutions.
Loans are issued in US dollars. The Start-up Fund is willing to share foreign currency risk with its borrowers, with interest and principal payments linked to a benchmark index.
Rates on Start-up Loans are quite flexible. Loans are typically structured with a base rate, which may be set low if the institution is not yet profit-making. As it reaches sustainability, the rate adjusts based on 1) the level of net income, and 2) the relative share of the Start-up Loan in the institution’s capital structure. The maximum rate is capped at a pre-agreed level.
$25,000 to $100,000
For an application package, please contact Asad Mahmood at Asad.Mahmood@db.com.
The Start-up Fund is supported by the Deutsche Bank Americas Foundation and CORDAID, a Dutch NGO. Donations in any amount are accepted. Program Related Investments from foundations are welcomed, with terms to be discussed on a case-by-case basis. Interested donors or investors should contact Asad Mahmood at Asad.Mahmood@db.com.
The Deutsche Bank Start-Up Fund