Uganda Development Bank

Uganda Development Bank

Uganda Development Bank

Uganda Development Bank Limited (UDBL) is a public enterprise wholly owned by the Government of Uganda and carrying on business as a Development Finance Institution (DFI).

The bank, a successor company to Uganda Development Bank, was incorporated as a limited liability company under the Public Enterprises Reform and Divestiture Act, Cap.98, Laws of Uganda and it is mandated to finance enterprises in key growth sectors of the economy. The Bank has been in existence since 1972.

UDBL re-positioned itself as a key partner to the Government of Uganda in delivering its National Development Plan (NDP).

In order to deliver this aspiration, the Bank focuses on the key growth sectors of the economy by financing development projects at attractive terms.

The Bank supports Small & Medium Enterprises (SMEs) and large scale development projects in the various key growth sectors notably;

• Infrastructure development
• Industrialization
• Primary agriculture, fisheries and livestock and, agro-processing
• Natural resources extraction
• Hospitality and Tourism
• Real estate development
• Information technology and telecommunication
• Social services like Education including vocational and tertiary education and, health.
• Trade and Commerce Sectors

Our Core Values and Organizational Culture

The core values of the Bank are:

Commitment: We are committed to growing and attaining sustainable value for all our stakeholders, and we will hold ourselves accountable at all times. The need to exceed our stakeholder expectations at all times will drive the manner in which we conduct our business.

Excellence: We shall endeavor to excel in whatever we do and we shall always seek innovative customer focused products and services. We are committed to doing whatever we do excellently at all times in pursuit of results.

Integrity: We will uphold the highest standards of ethics and integrity and endeavor to be transparent in all our actions at all times.

Uganda Development Bank Services

Long Term Loans:

Long-term loans are project loans that are intended for projects of long-term nature and with long repayment periods. Long term project loans must come with a detailed implementation schedule, which should not exceed 24 months from initial disbursement date.

Medium Term Loans:

Medium-term loans are project loans that are intended for projects with a capital expenditure component, including expansion of facilities, refurbishment of facilities, and re-re-equipment as well as establishment of new projects with cash flows. Medium- term project loans must come with a detailed implementation schedule, which should not exceed 12 months from initial disbursement date.

Short Term Loans:

Short term- loans are for purchasing either raw materials / productive inputs needed in the day to day operations of an entity or acquisition of assets with a cash flow that allows a loan repayment period of at most 18 months from initial disbursement. It may be for the working capital component & assets of a green project or for an existing project.

Equity Investment:

The Bank’s direct equity investment shall be in both start up and existing projects or enterprises, in partnership with private co- investors. The project may be initiated by the Bank and/or private investor. The Bank’s exit from the project should leave the project ongoing and successful. The Bank should not be a majority shareholder in such investment.

Trade Finance Loans:

Trade Finance loans are loans granted by the Bank against a lien on goods in commercial or bonded warehouse. Other forms of collaterals may also be provided as security for the loans.

Bank Guarantees:

This will take the form of an unconditional undertaking by UDBL to pay a specified sum of money to a beneficiary against presentation of a written demand and any other documents specified in the guarantee. The beneficiary will be indemnified for a stated amount against the failure of the Bank customer to fulfill its obligation under the underlying transactions.

Uganda  Development Bank Loan Applications

Below is an indicative list of the kind of the minimum information requirements UDBL needs in order to proceed with an application for financial support. Of course, these requirements may vary depending on the size of the project, its nature or domain and which of the facilities the client requires.

It is expected that project proposal documents submitted to the Bank shall present information in a manner that renders it to evaluation under the criteria set out above. Wherever necessary and especially where large and complex projects are concerned, project promoters shall be encouraged to use specialist advisory consultants in the preparation and presentation of their project documents to the Bank.

Application Requirements:

1. Application Letter
2. A copy of the Memorandum and Articles of Association and Certificate of Incorporation
3. A copy of the latest Income Tax Clearance certificate
4. A copy of the current operating License (s) where applicable
5. A copy each of the last 3 years audited/draft accounts in the case of business already established. Cash flow projections and proforma financial statements (Income statement, Balance sheet) where business not yet established.
6. A list of Title Deeds offered as security for the proposed loan indicating encumbrances/charges thereon if any
7. Copies of the latest available valuation reports of the assets offered as security
8. A copy of the detailed Business plan
9. Bank statement for the last six months including loan statements
10. Copy of National Environment Management Authority Certificate of application (Where applicable)
11. Copy of latest Return of Directors and Shareholders
12. Passport photographs of at least 2 directors of the company
13. Photocopy of IDs of the 2 directors in 12 above
14. List of all existing loans secured from other financial institutions, their status and terms.
15. Credit Reference Bureau Report (Where Applicable)
16. Bills of Quantities (Where Applicable)
17. Approved Plans (Where Applicable)
18. Supplier Contracts (Where applicable