Investment instruments

• medium to long-term loans,
• subordinated loans,
• term deposits,
• subscriptions to bond issues,
• certificates of deposits,
• co-investments (syndicated loans),
• stand-by letters of credit,
• guarantees, and
• equity and quasi-equity participation.

The terms and conditions applied for each instrument are subject to individual negotiations between the Fund and the respective partner lending institution. However, in general, the following terms are applied:

Maturity. In principle, the Fund's investments have a maximum maturity of 10 years and in exceptional cases may reach up to 15 years. Pricing. The pricing of the refinancing instruments provided by the Fund reflects market conditions and is based on a combination of the following three factors:
• market rates (reference rate - international and/or domestic; risk premiums - country and individual client risk profile), and
• competition.

Repayment. In principle, interest is paid semi-annually in arrears. Individual repayment schedules are negotiated between the Fund and each partner institutions in view of the partner's funding structure, use of funds and underlying risk profile.

Disbursement. An individual disbursement schedule is defined according to the absorption capacity and effective demand for funding of each partner institution. The total investment amount can be paid out at once or in tranches over several quarters.

Reporting. On a regular basis, partner lending institutions report on the development of their loan portfolio to the target group(s) and/or the products that the Fund wishes to support. Furthermore, partner institutions submit financial statements on a regular basis.