Terms & Conditions of Lending

The Bank's financial products are availed in both local and foreign currencies. The general terms and conditions are as follows:

Amount

• Medium and Long Term Loan US Dollar 50,000 to 10,000,000
• Short Term Loan US Dollar 50,000 to 400,000
• Asset Leasing US Dollar 20,000 to a maximum limit that depends on client needs
• Trade Finance US Dollar 50,000 to 5,000,000
• Investment in equity is subject to a maximum US Dollar 500,000 per entity

Interest Rate

EADB charges competitive lending rates

Both foreign and local currency loans are floating based on the Bank reference rate plus a risk margin. The margin depends on the perceived risk of the borrower. The Bank reference rate is based on the cost of funds per currency. The Bank also offers fixed interest rate facilities based on the clients' need.

Repayment

Loans are serviced in the currency of disbursement.

Medium and Long Term loans, including loan guarantees, carry an average of eight years and a maximum term of 15 years.

A grace period of up to two years is allowed for project preparation and implementation depending on the nature of the project.

Short-term working capital loans are repayable within a maximum period of 24 months.

Exposure

The Bank's exposure in one project is limited to the following:

• The total amount of loan granted by EADB together with other eventual commitments under a guarantee in favour of the project does not exceed 50% of the project net worth.
• Equity investment is selective and EADB shareholding will normally not exceed 25% of the authorized share capital of the project.

Security

These include but not limited to: A legal charge on movable and immovable assets, Bank and Insurance Guarantee, Promissory Notes, Shareholders' Guarantee.

Documentation

The main documents consist of the Loan Agreements, debenture and Mortgage deeds and Guarantee Agreements.