1. Strategic direction of BDC?
BDC is mandated to facilitate the development of new industries and value chains. The Corporation intends to promote best practices in business, governance and environmental standards in the funds or companies they choose to invest in. The Corporation’s objective is to provide increased access to funding through under-invested sectors, working to maximize the social outcomes
2. Does BDC give preferential consideration to foreigners?
No. BDC’s mandate is to provide assistance to investors with commercially viable projects. It also has an added role of encouraging citizen participation in business ventures.
3. Will BDC take an unnecessarily long time to consider my project proposal?
4. Will BDC allow me to independently run the business once it has been funded?
BDC is not involved in the day to day running of their funded projects. However in equity participation ventures, the Corporation will appoint director(s) to the board, who monitor and play an advisory role. BDC’s Policy is to divest itself of interests in companies as they mature
5. Will BDC consider a project, if it is already assisting a company in the same sector?
BDC has interests in a number of competing companies.
6. Will BDC demand a controlling stake in my company?
When BDC takes equity in a company, it prefers to be a minority shareholding taking up only 26%
7. Can an investor buy back the shares held by BDC?
In line with its divestment policy, BDC will exit a business once it deems it appropriate to do so.
8. Will BDC assist me with 100% of the project cost?
Whether the project sponsor requires a loan or equity, BDC expects a minimum contribution of 15% of the total project cost.
9. Does BDC fund new projects only?
BDC funds both new and expansion projects.
10. Does BDC have preferred locations for its projects?
No. BDC assists projects based on viability and sustainability, and currently it has projects in different locations. However it should be noted that location has a bearing on viability of the business.